Britains FTSE 100 index fell 0.26% to 7326.0; Frances CAC 40 index fell 1.05% to 5630.7; Germanys DAX index fell 1.01% to 12342.3. The Pan-European Stoke 600 index fell by about 0.8%, with automotive, mining and banking sectors all falling sharply. Peugeot Citroen, Commerce Bank of Germany and ArcelorMittal led the market down, with shares falling more than 1%.
PMI data is worrying, the current situation of manufacturing industry affects investors nervous
Specifically, although IHS Markit data show that PMI in manufacturing in the United States hit a five-month high in September, PMI in services also grew at the fastest rate in nearly two months. But U.S. manufacturing remains at its lowest level in nearly three years, and new business growth has fallen to its lowest level since 2009.
This is also a major obstacle for the U.S. stock index to approach its historical high. After Mondays close, the gap between the Dow Jones Industrial Average and the Standard & Poors 500 Index is more than 1% from its historical high, while the Nasdaq Composite Index is nearly 2.7% from its historical high. Mark Newton, manager of Newton Consulting, said: The upward trend of the U.S. stock index has remained basically unchanged since its low in mid-August, but the risk/return ratio for investors entering the stock market is still very poor unless the major stock indexes and sectors can return to their historical high in July. The stock market performance in the next quarter will continue to be unsatisfactory.
U.S. stock index futures rose collectively, with Dow Jones Industrial Average futures up 0.38% to 26997.0; S&P 500 index futures rose 0.38%, returning to 3000.8 points; NASDAQ 100 futures index rose 0.48% to 7868.0 points;
Technology stocks ended up 0.9%, AMD rose nearly 2%, Yingweida rose 1.25%, Qualcomm rose 1%, Facebook fell 1.6%, Youbu rose 1.2%, Microsoft fell 0.2%, Tesla rose 0.25%, Nai fell 1.7%, Alphabet, Googles parent company, rose 0.4%. Amazon shares fell 0.4 percent after Morgan Stanley earlier lowered its target price from $2300 to $2200.
The situation in the Middle East is unpredictable and oil prices continue to fluctuate
Oil prices rose slightly on Monday, concussing for four consecutive trading days. The attack on Saudi oil facilities in mid September caused investors to worry about global crude oil supply, offsetting the impact of Saudi Arabias rapid recovery of production and the slowdown in European economic growth. Brent crude oil futures rose 40 cents to $64.68 a barrel, while WTI crude oil rose 0.95 percent to $58.64 a barrel.
Jim Ritterbusch, head of Ritterbuschand Associates, a Chicago-based energy consultancy, said: The attack on Saudi oil and gas equipment has resulted in a decline of nearly 5.7 million barrels of oil production per day. Although Saudi Arabia has earlier indicated that it has recovered 75% of the loss of crude oil production caused by the attack, crude oil market prices in recent trading days have declined. The downturn and shocks show that investors are still worried about geopolitical risks in the Middle East. Therefore, we believe that the crude oil market is expected to enter a higher price range. After all, Brent crude oil is still up 19% this year, driven by the OPEC-led production reduction agreement.
On the other hand, the contraction of German economic activity, the stagnation of manufacturing and services growth in the euro area in September, and the unexpected deepening of the manufacturing recession also constrained German economic growth activities, which also depressed other markets such as oil and stocks. Craig Erlam, an analyst at Onda Securities, said: The recent performance of oil prices has also been affected by the decline in European stock markets, and the gloomy manufacturing data in the eurozone have hit global economic growth and demand. Geopolitical risk premium has returned, and the future trend of crude oil supply has attracted renewed attention.
Tensions in the Middle East have escalated since the Saudi attack. The Pentagon has ordered more U.S. troops to be deployed in the Gulf to strengthen Saudi Arabias air and missile defense capabilities.
The United States and Saudi Arabia condemned the Iranian attack. British Prime Minister Johnson also held Iran responsible for the attack and would respond with the United States and the European Union, but Iran denied responsibility for the attack. The attack on Saudi oil fields has also refocused investorsattention on the oil prospects of other OPEC oil-producing countries, including Nigeria, Libya and Venezuela, where oil supplies remain unstable.