- Ben May at Capital Economics
Eurozone's manufacturing sector contracted for the 15th consecutive month in October, adding to worries that region's economy may continue deterioration in the last quarter of this year. The market research group Markit said its index of manufacturing activity tumbled to 45.4, down from 46.1 recorded in September. At the same time, German's PMI fell to 46.0 from 47.4, while Spanish manufacturing sector contracted for the 18th month in a row to record 43.5, down from 44.5 in September.
"The situation in the core economies is worsening. Rather than the strength in the core dragging the periphery out of recession it appears more likely that the core will follow the periphery into recession," said Ben May at Capital Economics.
"All in all, the picture for the economy remains extremely sluggish. Further rate cuts would be fully justified by the current economic scenario," said Annalisa Piazza at Newedge Strategy.
The Stoxx Europe 600 Index jumped 0.42 per cent to 274.85. Germany's DAX Index added 0.38 per cent to 7,363.85, while France's CAC 40 Index rose 0.49 per cent to 3,492.46.
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