Market Update
European markets stuck to the flat-line early Thursday as investors digested mixed economic reports from Asia and Europe.
A preliminary reading released earlier in the day by HSBC/Markit showed manufacturing activity in China declined unexpectedly. The flash reading came in at a six month low of 49.6, down from a final print of 50.5 in December -- marking its first contraction in six months.
Data from Europe, however, was encouraging. Private sector activity in the euro-zone came in better than expected in January according to preliminary reports, providing further evidence the region was on steady track to economic recovery.
The euro zone’s composite output index climbed to a 31-month high of 53.2 in January, up from a final reading of 52.1 in December.
Private sector activity in Germany also logged its strongest growth in almost three years during January.
But economic activity in France continued to contract for a third straight month in January, albeit a slower pace.
The FTSE 100 was trading flat at 9:36 a.m. in London, the CAC 40 Paris inched up 0.1% while the DAX Frankfurt was down 0.1%.
Stocks on the Move
Mining stocks were under pressure following the weak Chinese data. Top miner BHP Billiton plc lost 0.7% and Rio Tinto plc. erased 0.6%. Glencore Xstrata plc. erased 1.2%.
But Anglo American plc. was in the green, adding 1% after the platinum miner called for constructive talks with union members following strike action at its Rustenburg, Union and Amandelbult mines.
Banking firms were trading with modest gains that helped offset losses in the resources segment. French lenders Credit Agricole SA gained 1.7% while Societe Generale SA was up 1.3%.
Deutsche Bank AG added over 1% while Commerzbank AG gained 1.8% in Germany.
In London, Barclays plc. enhanced 1.7% while Lloyds Banking Group was up 0.8%.
Also in London, Pearson Plc. lost 2.5% after the publisher said it would continue to face tough trading this year.
Electricity and gas supplier SSE edged up 0.6% after reporting a solid performance in the year ending March 31. The company also said it would raise its dividend for the year by 3%.