European equity markets extended losses in today’s trading session, as fairly disappointing European economic data weighed on market sentiment and limited risk appetite. The CAC, DAX, IBEX and London equity benchmark index plunged sharply between 1.15% and 1.66%, while the euro gave back earlier gains and consolidated around 1.2850.
On the macroeconomic front, Eurozone’s Markit manufacturing PMI declined to 50.5 in September from 50.7 in August, missing analysts’ expectations and raising renewed concerns regarding economic recovery of the European economies. More specifically, Germany’s Markit manufacturing PMI fell to 50.3 in September from 51.4 in August, expanding at the slowest pace in 15 months as new orders declined in September. The DAX retreated sharply following the announcement, heading towards the 9,600 level. In addition, France’s Markit manufacturing PMI was reported at 48.8 in September, remaining below the key level of 50.0.
In the US, Makit manufacturing PMI was reported at 57.9 in September, missing analysts’ expectations of 58, while the FHFA house price index showed US house prices increased by 0.1% in July against expectations of a 0.5% rise. The Dow Jones index extended losses in early trading today, falling towards 17,100, while the S&P 500 and Nasdaq came under further pressure.
On the upside, precious metal prices rebounded with gold climbing above $1220/ounce, while silver edged higher towards $18. Platinum and Palladium also rallied on the day.
Tomorrow, investors will be keeping an eye on US new home sales data as well as the German IFO Business Climate and Current Assessment Index.