- US manufacturing expands
- Spanish manufacturing contracts
- NFR: Thanksgiving weekend sales estimated to have dropped
- UK and Eurozone manufacturing rises
FTSE 100: -0.83%
DAX: - 0.04%
CAC 40: -0.22%
FTSE MIB: -1.52%
IBEX 35: -0.94%
Stoxx 600: -0.33%
European stocks declined as a pickup in US manufacturing activity fuelled concerns that the Federal Reserve will start tapering monetary stimulus at its next meeting.
News out over the weekend regarding a drop in shop sales Stateside over the Thanskgiving weekend and mixed market commentary on Monday´s China manufacturing PMI probably also weighed on stocks. Furthermore, investors were likely positioning themselves ahead of Friday´s monthly US employment numbers.
The Institute for Supply Management (ISM) said its manufacturing sector purchasing manager´s index (PMI) rose to 57.3 in November from 56.4 a month earlier, exceeding the 55.1 forecast and the 50 reading that signals expansion.
Fed policymakers are turning to economic data to gauge the health of the world's biggest economy in deciding when to start scaling back its monthly $85bn bond buying programme.
While most economists don't see a tapering until March 2014, the Fed has indicated that tapering could come as soon as its mid-December meeting.
Meanwhile, and also proving a drag on markets, was disappointing Spanish manufacturing PMI figures which fell to 48.6 in November, the lowest since May, from 50.9 in October. Economists had predicted a reading of 51.1.
The data offset upbeat PMIs in the UK and Europe.
The Eurozone´s manufacturing PMI climbed to 51.6 in November from 51.5 in October, beating the forecast for the reading to remain unchanged.
In the UK, the manufacturing PMI came in at 58.4, above the consensus reading of 56.2 and the previous month's revised 56.5.
Debenhams was lower after Barclays downgraded the shares
to 'underweight' from 'overweight'.
Enel SpA retreated after Deutsche Bank said that its estimates for earnings at the Italian utility show no growth for 2013 or 2014.
Tesco dropped after HSBC downgraded the supermarket chain operator to 'neutral' to 'underweight' and cut the target price for the shares from 400p to 340p, saying the company was unlikely to maintain current margin targets.
L'Oreal advanced after the world's largest cosmetics maker said it will repurchase as much as €500m of shares.
Deutsche Boerse AG gained after the exchange signed a deal with the Bank of China to promote Frankfurt as a centre for yuan trading in Europe.
ThyssenKrupp declined after the German steelmaker agreed to sell its US plant to ArcelorMittal and Nippon Steel & Sumitomo Metal Corp. for $1.55bn.
Euro weakens against dollar
The euro fell 0.32% to $1.3548.
Brent crude rose $0.282 to $110.000 per barrel on the ICE.