Europe open: Stocks nudge lower after Chinese manufacturing data

At 0900 GMT, the benchmark Stoxx Europe 600 was down 0.1%, France’s CAC 40 was down 0.2% and Germany’s DAX was 0.1% lower.

The Caixin China manufacturing purchasing managers’ index rose to 48.3 in October from 47.2 in the previous month. Although this was a slight tick higher and better than analysts’ expectations for a nudge up to 47.5, it remained in contractionary territory, below 50.

China’s official manufacturing PMI, which was released on Sunday, missed expectations at 49.8, unchanged from the previous month and also below the 50 threshold that separates contraction from expansion.

“European equities are trading slightly lower to little changed this morning on the back of mixed to slightly disappointing Chinese manufacturing data,” said Markus Huber, senior trader at Peregrine & Black.

“Overall sentiment for European stocks remains positive as traders increasingly starting to position themselves for higher prices towards the end of the year. “

On the corporate front, HSBC was in the red. The bank posted a better-than-expected 32% rise in third-quarter pre-tax profit thanks to its cost-cutting programme and reduced fines, but adjusted pre-tax profit fell short of estimates.

Budget carrier Ryanair was also under the cosh. Although it reported a 37% increase in first-half profit after tax and said full-year net profit will be towards the upper end of its guidance range, investors were disappointed to hear ticket prices will be broadly flat this quarter and could fall 4% between January and March.

On the upside, Commerzbank shares rallied after the German lender posted better-than-expected third-quarter profit.

Still to come, investors will eye the release of US construction spending and ISM manufacturing at 1500 GMT.