Waning European recovery saps stocks momentum, knocks euro

Sombre economic numbers including euro zone data pointing to a faltering recovery doused global stock market gains on Friday and saw the euro recoil further from recent peaks.

Global equities dipped into the red and the panEuropean STOXX 600 gave away early gains to fall 0.6%, while US futures pointed to a 0.4% drop at the open.

The loss of momentum came after fresh numbers painting a muted economic outlook, with purchasing managers' index releases from France and Germany as well as the wider euro zone falling short of expectations, flagging slowing momentum in the recovery.

"The eurozone flash

PMIs for August paint a rather muted picture for the single currency area's nascent economic recovery," said Moritz Degler, senior economist at Oxford Economics.