Share

European shares down on China data

London - European equities fell on Monday, led lower by shares in commodity companies, after disappointing macroeconomic data from China intensified concerns about the pace of economic growth in the world's No 2 economy.

Weekend data showed China's factory output grew at the weakest pace in nearly six years in August while growth in other major sectors also fell, increasing fears that China may be at risk of a sharp slowdown unless Beijing takes new stimulus measures.

The FTSEurofirst 300 index of top shares fell for a third straight session and was down 0.3% at 1 378.79 points by 07:59 GMT.

On the mergers and acquisitions front, Dutch brewer Heineken said on Sunday it was approached by larger rival SABMiller about a potential takeover but that its controlling shareholder intended to keep the company independent.

Heineken and SABMiller shares rose 1.5% and 5% respectively.

The STOXX Europe 600 Oil and Gas index dropped 1.2%, the biggest sectoral faller in Europe, and the basic resources index slipped 0.4%, tracking crude oil and copper prices, which fell to their lowest level in about two years and three weeks respectively.

"A lot of oil inventories and little demand for the commodity indicate the global economy is not growing as strongly as hoped for, and this would fit with other indicators like copper prices have also fallen back and leading indicators from Europe have been on the weaker side," Baader Bank's head of equity strategy in Munich, Gerhard Schwarz, said.

"The sheer mass of political events that are coming to the market will constrain activity in the market in the short term."

Chinese economic data added to investors' nervousness ahead of the Federal Reserve's meeting on September 16-17. As the US economy picks up pace, the Fed is inching closer to raising rates, a move that will send ripples through markets worldwide.

The Fed meeting will conclude just a day before a neck-and-neck vote in Scotland on September 18 on whether to leave the United Kingdom. Until September, all polls but one in 2013 had shown the unionists with a comfortable lead but several surveys this month show the nationalists have won over hundreds of thousands of Scotland's 4 million voters.


We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.89
+0.3%
Rand - Pound
23.87
+0.1%
Rand - Euro
20.38
+0.2%
Rand - Aus dollar
12.32
+0.1%
Rand - Yen
0.12
+0.2%
Platinum
908.05
0.0%
Palladium
1,014.94
0.0%
Gold
2,232.75
-0.0%
Silver
24.95
-0.1%
Brent-ruolie
87.00
+1.8%
Top 40
68,346
0.0%
All Share
74,536
0.0%
Resource 10
57,251
0.0%
Industrial 25
103,936
0.0%
Financial 15
16,502
0.0%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders