Friday, 25 October 2013

Global stocks rebound as growth slows

Most stock markets rebounded on Thursday after the previous day's falls. The S&P 500 rose 0.3 percent while the STOXX Europe 600 rose 0.4 percent.

In Asia, stock markets were mixed though. The Nikkei 225 rose 0.4 percent but the Shanghai Composite Index fell 0.9 percent.

Chinese investors were apparently concerned after another 65-basis point jump in the seven-day repurchase rate on Thursday, the most in two months, and ignored a report on Thursday showing an acceleration in economic growth. HSBC's preliminary manufacturing PMI for October hit 50.9, up from 50.2 in September.

The rebound in stocks elsewhere occurred despite signs of slower growth.

In the US, the trade deficit widened in August as exports fell 0.1 percent while imports were flat. Markit's preliminary US manufacturing PMI for October fell to 51.1 from 52.8 in September.

In the euro area, Markit's preliminary composite index for October fell to 51.5 from 52.2 in September. The composite index was dragged down by the services index, which fell to 50.9 from 52.2. The manufacturing PMI rose to 51.3 from 51.1.

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