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European Bourses Ease on Slowing Manufacturing Sector in China

By: MT Newswires
Posted: 2/3/2014 12:19:00 PM
Referenced Stocks: ARTC;BBVA;LYG;RYAAY;SNN

European stocks declined after manufacturing activity in China slowed in January.

A report over the weekend in China showed output slowed in January to its lowest level in six months. The PMI index fell to 50.5 from 51, the National Bureau of Statistics and China Federation of Logistics and Purchasing said. A separate report today showed output from services industries also cooled last month.

Around the region, Markit Economics said British manufacturing expanded in January at a slower pace than in December, missing the median economist prediction.

The final numbers on the eurozone manufacturing sector for January showed the recovery at factories broadened, with the reading on Greece pointing to expansion for the first time since August 2009. For the combined euro zone, the manufacturing PMI rose to 54, signaling the fastest improvement since May 2011.

In the United States, the ISM manufacturing index dropped to 51.3 in January from 56.5 in December, hitting the lowest level since May. Economists surveyed by MarketWatch had expected the index to drop to 56.

In ADR news, Lloyds ( LYG ) said it set aside 1.8 billion pounds ($2.9 billion) in Q4 to cover the cost of compensating customers for mis-sold payment protection insurance. It also said it will not apply to the Prudential Regulatory Authority to resume dividend payouts until the second half of this year.

Ryanair Holdings Plc ( RYAAY ) said non-ticket sales, which include charges for reserved seating and priority boarding, rose 13% in the quarter through December. It also confirmed its full-year guidance, even as it swung to a loss in its fiscal Q3.

Banco Bilbao Vizcaya Argentaria SA ( BBVA ) was downgraded to hold from buy at Societe Generale SA, which its earnings estimates for 2014 and 2015 because of the bank's reliance on emerging markets for revenue.

Smith & Nephew ( SNN )agreed to buy ArthroCare Corp. ( ARTC ) for $1.7 billion, or $48.25 per share in cash.

Randgold Resources (GOLD) said it boosted gold production to a record level in 2013.

The FTSE-100 was last down 0.69% at 6,465.66, the DAX down 1.29% at 9,186.52 and the CAC-40 down 1.39% at 4,107.75.