European stock markets swung between small gains and losses on Tuesday as a string of disappointing data has forced investors to assess the effect of sluggish growth in China on the global economy.
Erasing an earlier loss, the Stoxx Europe 600 index SXXP, +0.20% rose 0.1% to 358.54, setting it on track for a third straight session of gains. The pan-European benchmark closed at the highest level since Sept. 17 on Monday, after weak U.S. jobs data from Friday sparked speculation the Federal Reserve will keep interest rates at a record low all of 2015.
On Tuesday, a lackluster report from Germany showed manufacturing orders in Europe’s largest economy unexpectedly slumped in August. The disappointing reading is seen as a sign that slower growth in China and recessions in other key markets are starting to affect Germany’s export-driven economy.
“The recent appreciation in the euro, the delay in Fed’s rate hike expectations and weaker macro picture could soon bring the [European Central Bank] to announce more policy action,” said Ipek Ozkardeskaya, market analyst at London Capital Group, in a note,
ECB President Mario Draghi will speak in Frankfurt in the evening local time and he “could pamper the euro market with additional dovishness,” she said.
Indexes: Germany’s DAX 30 index DAX, +0.28% was up 0.1% to 9,820.92, while France’s CAC 40 index PX1, +0.31% was flat around 4,617.70.
The U.K.’s FTSE 100 index UKX, +0.08% gave up 0.1% to 6,292.90, with shares of Glencore PLC GLEN, -3.71% GLCNF, +13.29% 0805, +2.06% down 4.4%.
Movers: Shares of Bouygues SA EN, +3.33% added 3.2% after the French conglomerate said rising demand for mobile data is set to lift its telecom unit’s profitability.
Vivendi SA VIV, +2.15% shares rose 2 after the French media group said it has increased its stake in Telecom Italia SpA TIT, -0.09% to 19.9%. Telecom Italia’s stock fell 0.2%.
SABMiller PLC SAB, -3.16% SBMRY, -0.43% gave up 3.1% after Bloomberg reported that the brewer had turned down an informal takeover bid from rival Anheuser-Busch InBev NV ABI, -0.39% BUD, +0.64% because the offer was too low.
Oversight: The European Court of Justice ruled the Safe Harbor agreement invalid. The ruling affects thousands of U.S. companies that use self-certification of their data protection to work around EU laws on the transfer of personal customer data.
