European stocks fell on Thursday as concern over slowing global growth overshadowed the initial optimism following better than expected factory data from China. Euro edged higher against the dollar. The Stoxx Europe 600 index closed down 1.5% having opened with a positive gap after China’s official manufacturing purchasing managers index edged up to 49.8 in September from 49.7 in August, indicating slowing of contraction pace in manufacturing sector of world’s second biggest economy. Economic reports on Thursday showed manufacturing activity in euro-zone slowed in September with Manufacturing PMI falling to 52 last month from 52.3 in August. The manufacturing PMI In Germany fell to 52.3 from 53.3 in August, while activity in France expanded with PMI rising to 50.6 from 48.3. European Central Bank President Mario Draghi said on Thursday the euro-zone has become more resilient and growth is picking up due to monetary stimulus program of the central bank. Today at 10:00 CET euro-zone producer price index for August will be released. The tentative outlook is negative.
Nikkei ended flat today as it edged up 0.02% in a thin trade. Investors refrained from making big bets ahead of nonfarm payroll release in US.
Oil futures prices are rising today on heightened geopolitical risks as Russia and the United States are carrying on bombing campaigns and hundreds of Iranian troops arrived in Syria to support government troops. Supply and demand fundamentals remain weak, and Saudi Arabia is expected to cut the prices of crude it sells to Asia in November to retain its market share in the region amid a global oversupply.
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