Europe open: Stocks mixed after Fed rate cut
European stocks were mixed in early trading on Thursday as investors digested the latest rate cut from the US Federal Reserve and eyed weak Chinese data.
At 0902 GMT, the Stoxx 600 was 0.1% higher at 398.99, as Germany's Dax was flat at 12,913.69 and the French CAC 40 fell by 0.1% to 5,760.58. Meanwhile, London's FTSE 100 was 0.3% lower at 7,311.51.
The Fed cut interest rates by 0.25% for the third time in four months on Wednesday evening, with Fed chief Jerome Powell stating that "the current stance of monetary policy is likely to remain appropriate".
CMC Markets analyst David Madden said: "The move by the Fed should take some of the pressure off Mr Powell in relation to President Trump’s outbursts on Twitter. The US president has been demanding the Fed lower interest rates in a bid to drive down the value of the US dollar - to make US exports more competitive.
"It is possible the move by the Fed last night might pave the way for other central banks around the globe to follow suit, so Mr Powell might not be out of the woods yet as far as far as Trump is concerned."
China's manufacturing purchasing managers' index (PMI) contracted for a sixth consecutive month as it fell from 49.8 in September to 49.3 in October, below an expected reading of 49.8.
Meanwhile, non-manufacturing PMI came in at 52.8, falling short of an anticipated reading of 53.7.
London Capital Group analyst Ipek Ozkardeskaya said Chinese PMI figures tend to stagnate in October due to a week-long Golden Week break, so the October data should be taken with a pinch of salt.
PSA Peugeot dived and Fiat Chrysler surged after the two agreed to a merger that will result in the fourth-largest automaker in the world.
CMC Markets analyst Michael Hewson said: "It’s not hard to understand this reaction when you consider the job done by Peugeot management have done over the last five years, while Fiat Chrysler management have overseen a tired product line and little in the way of innovation, in response to the challenges that are facing the sector as a whole."
Among other individual stocks, ASM International rose after the Dutch semiconductor manufacturer reported record third-quarter sales and predicted further improvements during the final three months of the year.
French satellite operator Eutelsat Communications topped the Stoxx 600's fallers after falling around €11m short of first-quarter revenue expectations and slashing full-year revenue guidance for its operating verticals division.
Oil giant Royal Dutch Shell was also in the red after lower oil prices sent its third-quarter profits down 15% and the company warned that weak macroeconomic conditions and a challenging outlook made the pace of its share buyback programme uncertain.