Morale among German analysts and investors plummeted in October to its lowest level in a year as the diesel emissions scandal at carmaker Volkswagen VOWG_p.Delaware and weakness in emerging markets took their toll, a survey by ZEW think tank showed on Tuesday.
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The Dow Jones Industrial Average edged up 0.04 percent to 17,138.37 points, while the broad-based S&P 500 slipped 0.02 percent to 2,017.04, and the tech-rich Nasdaq Composite Index rose 0.04 percent to 4,840.78. The country’s General Administration of Customs on Tuesday said Chinese exports and imports fell in September in yuan terms, with exports down 3.7% year-over-year.
However, shares of British brewing giant SABMiller Plc jumped 9 percent after Anheuser-Busch InBev SA agreed to buy it in the biggest ever takeover of a British company. The maker of Budweiser and Stella Artois said it would offer £43.50 per share in cash to most SABMiller shareholders, an improvement from the £42.15 it put forward last week.
“We had seen quite a sharp recovery in the miners but yet again, China has brought us back down to earth with those weak figures”. “The emissions scandal at Volkswagen and sluggish growth in emerging markets are dampening the economic outlook for Germany”, commented ZEW President Clemens Fuest in a recently released statement.
China’s dollar-denominated exports fell 3.7 percent in September from a year earlier, while imports plunged 20.4 percent to chalk up their eleventh consecutive month of decline, official data showed on Tuesday.
The Centre for European Economic Research (ZEW) said its monthly indicator measuring financial analysts and investors’ confidence declined by 10.2 points to 1.9 points in October.
“However, the performance of the domestic economy is still good and the euro-area economy continues to recover”.
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Asian stocks ended a week-long rally on Tuesday after the Chinese data renewed concerns about growth in the world’s second largest economy. While the Shanghai Composite Index ended the day mostly flat, Indian, Japanese and Hong Kong markets all closed in the red.
