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    01.09.2015 16:00 European stocks close: stocks closed lower on concerns over a slowdown in the global economy

    Stock indices closed lower on concerns over a slowdown in the global economy. The Chinese stock market declined on the weak Chinese manufacturing and services PMIs on Tuesday. The Chinese manufacturing PMI declined to 49.7 in August from 50.0 in July, in line with expectations, according to the Chinese government. It was the lowest level since August 2012.

    A reading above the 50 mark indicates expansion, a reading below 50 indicates contraction.

    "There is insufficient growth momentum in the country's manufacturing sector," Zhao Qinghe, an economist at the National Bureau of Statistics, said.

    The services PMI fell to 53.4 in August from 53.9 in July.

    The final Chinese Markit/Caixin manufacturing PMI declined to 47.3 in August from 47.8 in July, beating the preliminary reading of a fall to 47.1. It was the lowest level since March 2009. The decline was driven by falls in total new orders and new export business.

    The Caixin/Markit Services Purchasing Managers' Index (PMI) for China dropped to 51.5 in August from 53.8 in July, missing expectations for a rise to 53.9. The decline was driven by a weaker increase in new orders.

    International Monetary Fund (IMF) Managing Director Christine Lagarde said on Tuesday that the global growth will be weaker than expected earlier due to a slower recovery in advanced economies and a further slowdown in emerging economies.

    Meanwhile, the economic data from the Eurozone was positive. Eurozone's unemployment rate declined to 10.9% in July from 11.1% in June. It was the lowest level since February 2012. Analysts had expected the unemployment rate to remain unchanged at 11.1%.

    Markit Economics released its final manufacturing purchasing managers' index (PMI) for the Eurozone on Tuesday. Eurozone's final manufacturing purchasing managers' index (PMI) fell to 52.3 in August from 52.4 in July, down from a preliminary reading of 52.4.

    The Federal Labour Agency released its unemployment figures for Germany on Tuesday. The number of unemployed people in Germany declined by 7,000 in August, exceeding expectations for a 2,000 decline, after a 8,000 rise in July. July's figure was revised down from a 9,000 increase.

    Markit Economics released its manufacturing purchasing managers' index (PMI) for the U.K. on Tuesday. The Markit/Chartered Institute of Procurement & Supply manufacturing PMI for the U.K. decreased to 51.5 in August from 51.9 in July, missing expectations for a rise to 52.0.

    A reading above 50 indicates expansion.

    The decline was driven by a drop in purchase prices. Average costs showed the steepest decline during the past 16 years.

    Indexes on the close:

    Name Price Change Change %

    FTSE 100 6,058.54 -189.40 -3.03 %

    DAX 10,015.57 -243.89 -2.38 %

    CAC 40 4,541.16 -111.79 -2.40 %


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