World Economy

Asian, European Shares Decline

Asian, European Shares DeclineAsian, European Shares Decline

European shares inched up in choppy trade on Tuesday, trimming the previous session’s losses, Reuters reported.

Gains were limited, however, after data showing China’s economic growth slowed in the third quarter to its weakest since the 2008/09 global financial crisis as a slumping property market dragged on manufacturing and investment, fuelling worries over flagging global growth.

“The main trend is still negative. Volatility is falling back but remains at a high level. We’re in a technical bounce and the market is vulnerable,” said Jean-Louis Cussac, head of Paris-based firm Perceval Finance.

“In this context, selling all the rebounds is a good strategy to benefit from the swings.”

The FTSEurofirst 300 index of top European shares was up 0.4 percent at 1,278.57 points, after losing 0.6 percent.

The Euro STOXX banking index was up 3 percent with the biggest gains seen in Greek, Italian and French banks.

After a year-long review of Europe’s 130 biggest banks, the ECB is set to announce on Oct. 26 which have valued their assets properly and which have not, as well as whether banks need more capital to withstand another economic crash.

 Total Shares Fall

Shares in oil giant Total fell as much as 2.3 percent after its chief executive Christophe de Margerie was killed when a business jet collided with a snow plough during takeoff at Moscow’s Vnukovo International Airport.

Around Europe, UK’s FTSE 100 index was up 0.4 percent, Germany’s DAX index up 0.7 percent, and France’s CAC 40 up 0.8 percent.

After the close on Wall Street on Monday, Apple posted a better-than-expected 16 percent jump, helping the company surpass Wall Street’s targets.

Japan’s benchmark Nikkei fell on profit-taking following Monday’s 4 percent rally, which marked the index’s biggest daily rise in more than a year and a one-week closing high. The yen strengthened 0.5 percent against the greenback, which also weighed on sentiment and pressurized exporters.

Hong Kong’s benchmark Hang Seng Index fell ahead of official talks between senior government officials and student leaders behind the pro-democracy protests.

China’s shares eased nearly 1 percent, ending at their weakest levels in a month. Railway firm China CNR pared gains to close flat on news the firm is making a pitch to sell high-speed trains to California.