European stocks look set to follow Asia lower on Monday after surveys on China’s manufacturing and services sectors suggested the world’s second-largest economy is still in the doldrums.
China’s official manufacturing PMI came in unchanged at 49.8 in October and growth in the country’s services sector slowed to its lowest level in seven years, while a private reading on the country’s manufacturing sector contracted for an eighth straight month.
Asian shares are mostly lower, with Japanese and Australian shares pacing the region’s declines. Crude oil prices fell in Asian deals, copper hit one-month low and the dollar edged lower, while gold rebounded from more than three-week lows. U.S. stock futures are drifting lower amid the release of weak data from China.
The major U.S. averages slid around half a percent each on Friday in the wake of mixed earnings and disappointing data on consumer sentiment, personal income and spending. However, U.S. stocks ended October with their biggest monthly gain in four years on optimism about the economy.
With the Fed seriously considering a December rate hike, investors await U.S. jobs data due out Friday for further direction. The economic calendar remains light today, with manufacturing PMI reports from major European countries and U.S. manufacturing PMI and construction spending data slated for release.
Meanwhile, Greece’s banks need to raise more than 14 billion euros ($16 billion) in capital under the supervisors’ so-called “adverse scenario”, the European Central Bank said on Saturday after months of “stress testing”.
In corporate news, Commerzbank long-serving CEO Martin Blessing will step down from the role next October.
Telecom giant Vodafone confirmed that hackers have managed to access personal details of almost 2,000 customers over the Internet.
HSBC Holdings’ quarterly profit jumped by a third in the third quarter on the back of lower costs related to fines and legal settlements.
The European markets closed firmly in the red on Friday even as weak inflation and German retail sales figures put more pressure on the ECB to act. The German DAX and the U.K.’s FTSE 100 dropped about half a percent each, while France’s CAC 40 index slipped 0.2 percent.