LONDON — Europe’s markets were back on a downward streak this morning, after two days of gains.
The FTSE 100 in London dropped 0.7 percent, the CAC 40 in Paris was down 1.2 percent, the DAX in Frankfurt was down 2.2 percent and the FTSE MIB in Milan was down 1.1 percent.
The Nikkei 225 in Tokyo closed up 1.2 percent, while the Hang Seng Index in Hong Kong closed up 0.3 percent.
Mining and engineering companies Xstrata and GKN were among the biggest losers in London, while car manufacturers Peugeot and Renault were among those that fell most in Paris.
The falls came on the back of weak data. The British Chambers of Commerce said today that it had reduced its GDP growth forecast for 2011 to 1.1 percent, from a previous estimate of 1.3 percent, and had revised its forecast for 2012 to 2.1 percent, from a previous estimate of 2.2 percent.
Data from information services company Markit, also released today, said manufacturing levels in the U.K. fell to 49 points in August, marking the fastest rate of production decline since June 2009. Manufacturing activity in the Euro zone also fell to 49 points in August, its lowest level since August 2009. Below 50 points is considered a contraction in the sector.
Fashion and luxury stocks were mixed following the news. Mulberry rose 3.2 percent, Prada closed up 3.7 percent and Tod’s rose 4.1 percent, while French Connection surged 8.9 percent. Meanwhile, Richemont fell 2.4 percent, L’Oreal fell 3 percent and Swatch Group fell 3.1 percent.