European stocks mostly climb on upbeat eurozone data

(MENAFN- AFP) An acceleration in eurozone manufacturing activity helped push most European stocks higher Monday, but London was dragged down by mining stocks reacting to downbeat Chinese data.

Markit Economics said its Purchasing Managers' Index (PMI) for the euro area's manufacturing sector rose to 52.3 last month from 52.0 in September.

October's final manufacturing PMI figure compared with the previous estimate for an unchanged reading, and held above the key 50-level which indicates expansion.

"Growth in the eurozone has been quite sluggish for much of this year and the revised PMI data this morning was expected to support this view," said analyst Craig Erlam at traders Oanda.

"While the numbers were not great, they did provide more cause for optimism than was expected."

The news boosted eurozone equities but London sank as a separate survey showed that China's manufacturing activity shrank again.

Media group Caixin's Chinese PMI, which tracks activity in factories and workshops, came in at 48.3 last month, it said in a joint statement with survey compiler Markit.

It remained below the break-even point of 50 but marked the smallest contraction since June.

In reaction, British mining companies fell sharply in London.

The market is heavily weighted towards the mining sector, which relies on keen demand from top commodity consumer China.

- 'Upbeat mood' -

Resources titan Anglo American saw its share price slide 1.10 percent to 540.60 pence and peer Rio Tinto shed 1.55 percent to 2,322.00 pence.

Elsewhere, HSBC bank's shares slid 1.10 percent to 502.00 pence as investors digested sliding third-quarter revenues, shrugging off news of surging profits.

"European stock markets have turned higher... although HSBC's disappointing results and the underperforming mining stocks were keeping the UK's FTSE 100 in the negative territory," said Gain Capital analyst Fawad Razaqzada.

"Nevertheless, investors don't seem to be too concerned about China after the latest manufacturing PMI data there failed to provide any positive or nasty surprises.

"They are still in an upbeat mood after equities have just had one of their best months in recent years, thanks in part to the promise of more stimuli from the European Central Bank and dovish central banks elsewhere -- the Federal Reserve being the only exception," he added.

In early afternoon eurozone deals, Frankfurt's DAX 30 rallied 1.03 percent to 10,961.92 points and the Paris CAC-40 won 0.56 percent compared with Friday's close to 4,925.08.

Milan stocks added 0.60 percent and Madrid 0.72 percent.

On the downside however, London's benchmark FTSE 100 index of blue-chip companies slid 0.20 percent to 6,348.60 points.

In foreign exchange, the European single currency pushed up to $1.1042 from $1.1003 late in New York on Friday.

In Asia, data showing China's manufacturing activity slowed in October for the third straight month, fuelling worries about its economy which is a crucial driver of global growth, pushed most stocks lower.

Tokyo fell 2.10 percent, while Shanghai lost 1.70 percent and Hong Kong ended 1.2 percent lower

US stocks opened higher Monday at the start of a news-jammed week that includes earnings from Disney and the October jobs report.

In early trading, the Dow Jones Industrial Average climbed 0.26 percent to 17,709.84 points.

The broad-based S&P 500 rose 0.25 percent to 2,084.51, while the tech-rich Nasdaq Composite Index gained 0.21 percent to 5,064.61.