Global stocks shrug off weak economic data

World shares climbed on Wednesday, shrugging off economic data that pointed towards weak economic growth, and started the month on the front foot as the dollar struggled to move away from three- week lows.

The Euro Stoxx 600 added 0.8percent in early trading, with indices in Paris and London adding 1.2percent and 0.7percent, respectively. Travel & leisure and insurance stocks were among the top gainers. Wall Street futures gauges also pointed to early gains of about 0.4percent.

The upbeat tone for equities came in spite of signs that Asia’s factory activity lost momentum in August as a resurgence in coronavirus cases disrupted supply chains across the region. The limp data is likely to raise concerns that faltering manufacturing will add to economic headaches caused by slumping consumption. Investors are awaiting manufacturing activity and unemployment data for the eurozone later in the day. Still, many market players remained cautiously positive on prospects for equities in particular. “We’ve clearly witnessed a deceleration of macro data from the months before,” said Olivier Marciot, senior portfolio manager with Unigestion.