Asian, European Stocks Mixed Following Disappointing Data Out Of China

Global stocks were mixed on Tuesday after the Chinese government said the Caixin manufacturing purchasing managers index (PMI) for April fell to 49.4 from 49.7 in March. The figure fell short of the 49.9 analysts were expecting.

Any reading below the 50-mark indicates contractions but some analysts were unfazed by the data release.

"Although they missed expectations, the latest PMI readings do little to alter our view that China is in the midst of a cyclical rebound that should continue for at least another couple of quarters," CNBC quoted Julian Evans-Pritchard, a China economist at Capital Economics as saying in a note. "There are few signs in the latest readings that the ongoing property rebound, a key driver of the recent recovery, is losing steam."

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China's Shanghai index gained 1.85 percent while Hong Kong's Hang Seng index shed a similar 1.85 percent. Taiwan's TSEC index lost 1.0 percent and India's Mumbai Sensex index lost 0.81 percent.

Japan's stock market was closed for a national holiday, but the yen traded to the lowest levels it has seen since October 2014.

Australia's ASX index surged higher by 1.94 percent after the Reserve Bank of Australia unexpectedly slashed its benchmark rate by 25 basis points to a historical low of 1.75 percent.

On the other hand, European stock indices were solidly in the red as the euro reached the highest level it has seen in more than 8 months at $1.1584. The British pound also traded at the strongest level it has seen since January but reversed course after the country's manufacturing purchasing managers' index fell to 49.2, also indicating contraction.

Germany's DAX index fell 1.87 percent, France's CAC index fell 1.70 percent and UK's FTSE index lost 1.19 percent.

Oil prices fell Tuesday morning after data from the Middle East added to concerns of a global supply overhang. Brent crude futures fell $0.37 and were trading at $45.56, while U.S. crude futures were lower by a similar $0.37 and were trading at $44.41 a barrel.

Posted In: NewsCommoditiesGlobalPre-Market OutlookMarketsAsian StocksChinaChina DataEuropean stocksoil prices
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