European stocks dive on China woes, lower oil

FXStreet (Mumbai) – The stocks on the European bourses extend the previous drop and remain deep in the red, as the sentiment was hit by plummeting oil prices and the ongoing weakness surrounding the Chinese economy, after the Caixin services PMI disappointed markets.

Most major Asian equities closed in the negative territory after another round of yuan depreciation by the PBOC raised concerns over the country’s exports’ sector and spooked market sentiment.

Against the backdrop persisting market unrest on China woes, lower oil prices and North Korea nuclear news, the European indices completely ignored the upbeat services PMI readings across the Euro are economies. Carmakers, resources and energy sector are deep in the red, hurt by weak oil prices.

Meanwhile, the German services PMI gauge rose 56.0 points, better than the preliminary result of 55.4, hitting 17-month high. While the euro zone PMI Composite Output Index rose to 54.3 in the final month of 2015, against 54.2 seen in November.

Germany’s DAX 30 index drops -1.25% to trade at 10,179, while the UK’s FTSE 100 index falls -1.29% to 6,055. Among other European indices, the French CAC 40 index slips -1.42% to 4,472, while the pan-European Euro Stoxx 50 index drops -1.03% to 3,136.

The stocks on the European bourses extend the previous drop and remain deep in the red, as the sentiment was hit by plummeting oil prices and the ongoing weakness surrounding the Chinese economy, after the Caixin services PMI disappointed markets.

(Market News Provided by FXstreet)