Greek stocks bashed on re­turn, China woes go on for com­modi­ties

The Pak Banker - - INTERNATIONAL BUSINESS/SPORTS -

The Greek stock mar­ket slumped when it re­opened on Mon­day af­ter be­ing shut down for five weeks, while weak data from China helped push oil prices to their low­est in six months and Asian stocks close to their 2015 lows.

Sur­veys showed China's fac­tory ac­tiv­ity con­tracted by the most in two years, en­sur­ing a three-month sell-off in com­mod­ity and emerg­ing mar­kets would con­tinue.

Brent oil fell to $51 a bar­rel, its low­est since the end of Jan­uary. In­dus­trial me­tal cop­per CMCU3 dropped to its weak­est in six years. Gold was $1,093 an ounce XAU= af­ter two years.

Europe was un­set­tled. Stocks in Athens .ATG plunged 17 per­cent when the mar­ket re­opened af­ter clos­ing in late June. The euro EUR= and lower-rated gov­ern­ment bonds also saw some mild selling.

On the other hand, eco­nomic data was en­cour­ag­ing. Euro zone fac­tory ac­tiv­ity grew faster than pre­vi­ously thought in July. The Nether­lands, Spain and Italy all re­ported healthy growth - Italy's ex­pan­sion was its best in more than four years.

"Pol­i­cy­mak­ers will be re­as­sured by the ro­bust growth rates seen in these coun­tries and the re­silience of the manu-

its worst month in fac­tur­ing sec­tor as a whole," said Chris Wil­liamson, chief economist at sur­vey com­piler Markit. "Es­pe­cially as growth is likely to pick up again now that Greece has jumped its latest hur­dle in the on­go­ing debt cri­sis,"

Up­beat re­sults from HSBC (HSBA.L), Com­merzbank CBKG.DEHSBC and Heineken (HEIN.AS) also helped off­set Greece's trou­bles.

The pan-Euro­pean FTSEurofirst 300 .FTEU3 was 0.5 per­cent higher by 1045 GMT. Gains of 0.7 and 0.6 per­cent in Frank­furt .GDAXI and Paris FCHI com­pen­sated for a 0.2 per­cent dip by Lon­don's FTSE .FTSE as its min­ing com­pa­nies and oil firms suf­fered again.

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