European Stock Markets Manage Gains As Dow Slips Back

European stock markets manage gains as Dow slips back

London, Sept 23 (UrduPoint / Pakistan Point News - 23rd Sep, 2020 ) :European stock markets advanced Wednesday though the Dow slipped back in New York following a mixed Asian performance as traders digested data showing expected slowdowns to economic recovery.

Business activity in the eurozone and Britain stagnated in September as a summer recovery faltered owing to rising cases of the coronavirus, IHS Markit said.

For the euro-currency bloc, the purchasing manager's index (PMI) fell to 50.1 points from 51.9 points in August, barely above the 50-point level that indicates growth.

The UK level dropped to 55.7 from 59.1.

"PMIs underline the fragility of the recovery," said Neil Wilson, chief market analyst at Markets.com.

As European markets closed, London's benchmark FTSE 100 shares index was 1.2 percent higher, well off its intraday high.

In the eurozone, Frankfurt's DAX 30 gained 0.4 percent while the Paris CAC 40 added 0.6 percent.

Both had also been markedly higher in afternoon trading.

In midday New York trades, the Dow Jones index showed a loss of 0.4 percent after getting off to a strong start.

"US stocks are mostly lower on the heels of yesterday's rebound, with political and Covid-19 uncertainty persisting, overshadowing mostly favourable global reports on September manufacturing and services sector activity," a Schwab Market Update said.

In Washington, Fed boss Jerome Powell had warned lawmakers the world's top economy would see a slower recovery unless they pushed ahead with a fresh rescue package.

British Prime Minister Boris Johnson has unveiled new measures meanwhile that will force English pubs and other hospitality venues to close at 10 pm, and halted a planned phased return of fans to live sporting events.

"The manufacturing sector can sustain a recovery as firms can work out how to function in the new environment, but it's harder for many service sector businesses to operate at all," Wilson noted.

The euro dropped to near a two-month low under $1.17.

Oil prices treaded water as traders waited for crude stockpiles data from the United States, a key indicator of demand.

- Key figures around 1600 GMT - London - FTSE 100: UP 1.2 percent at 5,899.26 points (close) Frankfurt - DAX 30: UP 0.4 percent at 12,775.95 (close) Paris - CAC 40: UP 0.6 percent at 4,802.26 (close) EURO STOXX 50: UP 0.5 percent at 3,180.11 New York - Dow Jones: DOWN 0.4 percent at 27,192.01 Tokyo - Nikkei 225: DOWN 0.1 percent at 23,346.49 (close) Hong Kong - Hang Seng: UP 0.1 percent at 23,742.51 (close) Shanghai - Composite: UP 0.2 percent at 3,279.71 (close) Euro/dollar: DOWN at $1.1677 from $1.1707 at 2120 GMT Pound/dollar: UP at $1.2759 from $1.2729 Euro/pound: DOWN at 91.52 pence from 91.96 pence Dollar/yen: UP at 105.35 Yen from 104.92 yenWest Texas Intermediate: FLAT at $39.77 per barrelBrent North Sea crude: FLAT at $41.68 per barrel