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Markets lower following weak PMI data

It was a more exciting day in financial markets today, albeit for the wrong reasons. Following successive days of low volume and limited moves on equity markets, European stocks suffered more severe pullbacks. Whilst indices were heading lower from the open, there was a more significant drop in the mid-afternoon as the US ISM Manufacturing index came in lower than expected, and construction spending declined 0.9% over the previous month. UK Construction PMI has earlier shown a contraction in the sector, as new orders few at their fastest pace in years. Analysts had anticipated a reading of 50 from the previous months 50.9, with August’s figure of 49.0 disappointing investors in the UK.

There were a handful of stocks in positive territory although their gains were unspectacular, with the majority of stocks in the red and miners, industrials and financials populating the lower end of the FTSE 100. ARM holdings, the semi-conductor business, fell more than 5%, following its downgrade from hold to sell by analysts at Deutsche Bank yesterday. The FTSE 100 lost 1.5% to 5672, continuing a trend of declines following the recent highs reached in the last weeks of August. US indices were off around 0.5% following the holiday yesterday, with European indices experiences losses akin to those seen in London.

This was posted in Bdaily's Members' News section by James .