European Equities Start Lower Despite China PMI

European shares opened lower on Tuesday despite new economic figures from China which showed an unexpected pickup in manufacturing activity.

A private survey overnight showed manufacturing in the world’s second-largest economy rose in September on strong orders. The HSBC flash manufacturing Purchasing Managers’ Index (PMI) climbed to 50.5 from a final reading of 50.2 in August. This was better than expectations for a reading of 50, which also separates expansion from contraction.

However, that optimism was offset by factory employment which slumped to a five-and-a-half year low. Asian stocks were mixed with the Shanghai Composite outperforming the region, up 0.6 percent. The FTSE is set to open higher with the U.K. benchmark containing some mining companies with heavy exposure to China, but other bourses are set to struggle during the session.


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