LONDON: European stock markets mainly rose Tuesday after Wall Street retreated from record high levels.
Business activity across the eurozone slowed in October, a key survey showed Tuesday, but job creation hit the fastest pace in a decade as the economic recovery in Europe stayed on track.
A purchasing managers’ index (PMI) compiled by Markit dipped to 55.9 in October after 56.7 in September, the group said in a statement.
“The eurozone PMI surprised on the downside in October… but underlying data should encourage (the) ECB,” said ING bank senior economist Bert Colijn.
“While the drop… could point to a somewhat slower (eurozone) GDP growth in the last quarter of the year, it does seem that growth will remain healthy and that the economy could weather slower asset purchases by the ECB,” he added in a client note.
Traders were looking ahead to Thursday, when the European Central Bank is set to announce a big reduction in its financial stimulus support for a recovering eurozone economy.
The ECB began buying massive amounts of bonds in 2015 to fight the threat of deflation — a damaging downward spiral of prices and activity.
Since then, the state of the eurozone economy has improved, and the ECB on Tuesday said that households across the single currency bloc enjoyed easier access to credit in the third quarter of 2017.
The ECB closely watches lending data to gauge the effectiveness of its ultra-loose monetary policy, which aims to bolster growth and inflation in the single currency area by encouraging spending and investment.
Over in New York meanwhile, the Dow’s five-day streak of record highs ended Monday as General Electric shares dived and the broader US market retreated at the start of a heavy week of earnings reports.
On Tuesday, Tokyo’s Nikkei led another broad advance across Asian stocks markets, with the index chalking up its 16th straight gain to extend an impressive record streak.
The Japanese market pushed to fresh 21-year highs on the back of a weaker yen and hopes that Prime Minister Shinzo Abe’s weekend election landslide victory will usher in further measures to boost the world’s number three economy.
Tokyo ended up 0.5 percent to continue the best run of gains in its near 70-year history.—AFP