Europe, US sink on Chinese data

London

European equities sank yesterday as more disappointing Chinese data and downbeat analyst comment weighed on the mining sector. 

London’s benchmark FTSE 100 index ended the day down 2.46 per cent to 5,958.86 points compared with Friday’s close.

In the eurozone, Frankfurt’s DAX 30 finished 2.12 pc lower at 9,483.55 points and the Paris CAC 40 plunged 2.76 pc to 4,357.05.

In foreign exchange activity, the euro edged up to $1.1235 from $1.1202 late on Friday in New York.

Europe’s markets sank as data showed China’s crucial industrial companies saw profits fall 8.8 pc in August -- hit by last month’s shock yuan devaluation, weak demand and plunging share prices.

Wall Street sinks

US investors also took fright at the Chinese data as Wall Street shares fell yesterday, with the Dow Jones Industrial Average falling 1.34 pc to 16,096.80 points near mid-day trade in New York.

The broad-based S&P 500 lost 1.71 pc to 1,898.31 points, while the tech-rich Nasdaq Composite Index dropped 2.01pc to 4,592.51.

Despite the poor data from China, however, Shanghai staged a recovery after a morning sell-off, ending 0.27 pc higher yesterday.

Elsewhere in Asia, Tokyo rose 1.32 and Sydney added 1.42 pc. Hong Kong, Seoul and Taipei were closed for public holidays.

Mideast mixed post Eid

Gulf stock markets were mixed in quiet, early trade yesterday as more investors returned from Eid al-Adha holidays.

Dubai’s stock index slipped 0.3 pc as trading continued to focus on low-priced, speculative shares favoured by local retail investors.

Abu Dhabi’s index gained 0.5 pc while Kuwait edged up 0.1 pc.

Markets in Saudi Arabia, Qatar and Bahrain will resume trading today after Eid breaks.