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European Bourses Mostly Ease As U.S. Government Remains Shut for Third Day

By: MT Newswires
Posted: 10/3/2013 12:34:00 PM
Referenced Stocks: AV;BP

European stocks mostly slip amid an ongoing budget impasse in the United States.

The U.S. government is now in its third day of shutdown without a resolution in sight. The Treasury Department warned that if Congress doesn't raise the debt ceiling and the U.S. defaults on its obligations, it would be "catastrophic" for financial markets and the economy.

Mild support came from China, where the non-manufacturing purchasing managers' index rose to 55.4 in September from 53.9 in August, the National Bureau of Statistics and Federation of Logistics and Purchasing said. That''s the highest level since March.

Also, purchasing managers index data for the euro zone showed business activity picked up at the fastest rate in more than two years in September. In the U.K., the dominant services sector grew at the fastest pace in more than 16 years in Q3.

In U.S. economic data, the ISM services index fell to 54.4 in September from 58.6 in August, below the 57.5 expected in a MarketWatch poll of economists.

In ADR news, Aviva ( AV ) said it generated $2.6 billion from the sale of its U.S. business to Apollo Global Management LLC's Athene Holding Ltd.

BP ( BP ) firmed after a U.S. appeals court ordered a reconsideration of key terms of a settlement in the 2010 Gulf of Mexico oil spill case.

The FTSE-100 was last up 0.18% at 6,449.04, the DAX down 0.37% at 8,597.91 and the CAC-40 down 0.73% at 4,127.98.