Europe close: Stocks end lower on disappointing PMIs, Middle East tensions
European stocks were in the red as a report showed Eurozone manufacturing activity declined and as tensions flared in the Middle East.
Markit’s Eurozone manufacturing purchasing managers’ index (PMI) dropped to 50.5 from 50.7 a month earlier, missing analysts' projections for a reading of 50.6. A level above 50 signals expansion.
Euro-area services PMI also declined to 52.3 in September from 52.1 in August, more than the 53 that was predicted.
In the US, Markit’s manufacturing PMI held at 57.9 in September, compared to forecasts for an increase to 58.
HSBC’s PMI on Chinese manufacturing earlier showed an increase to 50.5 in September from 50.2 the prior month, beating expectations for the reading to fall to 50.
Meanwhile, the US launched airstrikes against Islamic State (IS) positions in Syria in an attempt to abolish the Sunni extremist group. The Pentagon said in a statement on Tuesday that the United Arab Emirates, Saudi Arabia, Jordan, Bahrain and Qatar have helped with strikes against 14 IS targets near Raqqa and along the Iraqi border.
Raiffeisen, Yara
Raiffeisen Bank International plunged after saying it expects an annual loss amid exposure to risks in the Ukraine and Russia.
Yara International gained after the Oslo-based company said it’s in merger talks with CF Industries Holdings to create a fertiliser supplier with 420bn in sales to growth in North America.
Tesco dropped as Kantar Worldpanel said the grocer’s market share had declined this year. The UK supermarket chain also said Alan Stewart would leave M&S to join as chief financial officer on Tuesday.
Tate & Lyle edged lower after the maker of Splenda sweetener forecast an annual profit that missed analysts’ estimates.
The euro rose 0.04% to $1.2854.
Brent crude futures increased by 0.27% to $96.70 per barrel, according to the ICE.