Europe open: China market rally fails to inspire Stoxx; Stellantis slumps

30th Sep 2024 08:29

(Sharecast News) - European shares opened in negative territory as weak manufacturing survey data in China offset a surge in the Beijing stock market after more attempts to prop up the country's troubles property sector.

The pan-regional Stoxx 600 index was down 0.25% to 526 in early deals after setting fresh records last week.

Manufacturing activity in China was still in the doldrums in September as demand for new orders fell, according to official and private surveys published on Monday.

The National Bureau of Statistics (NBS) purchasing managers' index (PMI) edged up to 49.8 in September from 49.1 the previous month, but still below the 50-mark which separates growth from contraction. Forecasts had been for a print of 49.5 in a Reuters poll.

However, in the private Caixin survey, which covers smaller enterprises, the manufacturing PMI slumped to 49.3 in September from 50.4 in August, worse than the 50.5 expected by analysts and the lowest since July 2023.

The NBS non-manufacturing PMI dropped to 50.0 in September versus August's 50.3 figure and estimates of 50.4.

In the UK, figures released earlier by the Office for National Statistics showed that the economy grew less than initially thought in the second quarter of the year.

GDP grew 0.5% in the three months to June, down from a previous estimate of 0.6% growth.

On the equities front, automaker shares fell after Stellantis issued a profit warning on the back of weaker sales forecasts. Porsche, Renault, Forvia, Volvo and Volkswagen were all down.

Reporting by Frank Prenesti for Sharecast.com