European shares experienced a slight decline in the final trading session of September, with the pan-European Euro Stoxx 600 slipping 0.12%. Auto stocks were the biggest laggards, dropping over 2%, led by a significant 10% fall in Stellantis shares after the automaker lowered its 2024 guidance, citing worsening global industry dynamics and increasing competition from China.
This lackluster performance follows a strong finish for the Euro Stoxx 600, which reached a record high on Friday, buoyed by recent stimulus measures announced by China aimed at revitalizing its economy.
In the Asia-Pacific region, Chinese stocks surged over 6%, contrasting sharply with Japan’s Nikkei 225, which tumbled 4.64% as investors processed crucial economic data. China’s official purchasing managers’ index for September came in at 49.8, slightly better than the expected 49.5, although it still indicates a fifth consecutive month of contraction in the manufacturing sector. In Japan, industrial production fell 4.9% year-on-year in August, a more significant decline than the previous month’s 0.4% drop.
Looking ahead, U.S. stock futures were flat after major averages posted gains for three consecutive weeks. Key economic indicators are set to be released in Europe today, including German inflation and retail sales data, along with the latest Italian inflation rate and final U.K. GDP figures.
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