European Stocks Fall as U.S. Manufacturing Report Deflates Rally

An early advance in European stocks proved fragile, turning to losses after a report showed U.S. manufacturing deteriorated in September.

Signs of stabilization in China’s factory data had boosted investor optimism earlier today, with rallies in miners and energy shares sending the Stoxx Europe 600 Index up as much as 1.5 percent. The gains evaporated after the Institute for Supply Management’s manufacturing index missed estimates, falling for a third month.

Europe’s benchmark gauge lost 0.4 percent to 346.23 at the close of trading. Concern about a slowdown in China and uncertainty over the timing of a Federal Reserve rate increase sent the Stoxx 600 to its worst quarterly drop in four years.

Source: Bloomberg

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