Europe close: Stocks mostly lower after weaker-than-expected manufacturing data

European stocks finished Thursday mostly lower after an unexpected decline in Chinese, Eurozone and US manufacturing growth.

Markit’s purchasing managers’ index (PMI) for Eurozone manufacturing fell to 50.4 in November from 50.6 in October. Analysts had predicted a reading of 50.8. A level above 50 signals expansion.

The PMI for Germany fell to 52.1 this month from 54.4 the previous month, compared to forecasts for a 54.4 reading.

“Overall, PMIs are in line with our scenario of subdued growth in the final quarter of 2014: our euro-area PMI based gross domestic product indicator points to a modest rise of 0.1% quarter-on-quarter in the fourth quarter, in line with our forecast,” Barclays said.

In China, HSBC’s PMI on manufacturing fell to 50 in November from 50.4 a month earlier, missing expectations of 50.2.
In the US, the PMI for manufacturing edged down to 54.7 in November from 55.9 in October.

US inflation, jobs

US inflation rose by 1.7% year-on-year in October, in line with the previous month’s growth, and more than the 1.6% forecast.
US initial jobless claims fell by 2,000 to 291,000 in the week to 15 November, the Labor Department reported.

It marked the 10th consecutive week of unemployment claims coming in under 300,000, reflecting lower layoffs in the US as growth begins to improve.

The reports come after minutes of last month's Federal Open Market Committee (FOMC) meeting revealed that members had debated about whether or not to change its forward guidance on interest rates.

In the end, the FOMC maintained its stance to keep rates low "for a considerable time", but the minutes showed that policymakers were divided over the timing and trajectory of the first rate hike.

Miners fall on Chinese manufacturing PMI

A gauge of miners, including Rio Tinto, BHP Billiton and Anglo American, dropped after weaker-than-estimated Chinese manufacturing data.

Banco Bilbao Vizcaya Argentaria (BBVA) slumped after selling about 242m new shares at €8.25 each. It comes after the bank said it had agreed to pay up to $2.5bn to raise its holding in Turkiye Garanti Bankasi AS, Turkey’s largest bank.

ThyssenKrupp AG advanced after the steelmaker posted its first annual profit in four years and resumed dividend payments.

Technip SA edged lower after saying it will bid €8.30 a share for CGG SA.

The euro fell 0.25% to $1.2522.

Brent crude futures rose 0.85% to $78.77 per barrel, according to the ICE.