Europe open: Shares make cautious start after China data
European stocks opened higher on Tuesday as investors digested data from China showing factory activity grew at a slower pace in August.
The pan-European Stoxx 600 index was up 0.14% in early deals. There was also caution after data released on Monday showed euro zone economic sentiment eased more than expected in August, from a record high in July.
Oil and gas stocks were weaker on concerns around the impact of Hurricane Ida in the US.
China’s factory activity grew at a slower pace in August compared with July. The official manufacturing Purchasing Managers’ Index for August came in at 50.1, against July’s reading of 50.4. PMI readings above 50 represent expansion.
In equity news, Dutch technology investor Prosus rose 3.65% after it said it had agreed to buy Indian payments platform BillDesk for $4.7bn.
Travel stocks retreated after the EU recommended a pause on all non-essential travel from the US due to rising Covid cases. British Airways and Iberia parent IAG and budget airlines Wizz Air and easyJet were all weaker.
Banks were also on the decline, with HSBC, NatWest, Barclays and Lloyds all trading lower.
Engine maker Rolls-Royce fell after its biggest shareholder, Causeway Capital Management, called on the company’s incoming chair to "refresh" the board as it emerges from a downturn. Jonathan Eng, portfolio manager at the California-based investment group, told the Financial Times that he would like Anita Frew, who takes over as chair in October, to consider whether it had the right expertise at the top.