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China's Activity Weaker Once Again; Stocks To Open Lower

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By Minipip
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The Chinese data released earlier Tuesday is anticipated to weigh on European stock markets, causing them to begin Tuesday slightly lower.

Prior to the announcement of the final business activity figures for the area, the Chinese economy is anticipated to weigh on European stock markets, causing them to begin Tuesday slightly lower.

The release of a private sector poll on Tuesday that revealed China's services activity increased at the weakest rate in eight months in August and that stimulus has so far failed to significantly boost the second-largest economy in the world has dampened sentiment.

In August, the Caixin services purchasing managers' index increased by 51.8, which was less than the 53.6 reading that was predicted and the 54.1 reading from July.

The weak economic recovery in China, a significant market for the biggest businesses in Europe, has hurt those businesses' bottom lines.

Over in Europe, a surplus of service activity figures is scheduled for publication later in the session, which will offer more hints about the region's economy in advance of a policy meeting of the European Central Bank next week.

The possibility that the ECB will stop raising interest rates later this month has increased due to a string of negative eurozone statistics, notably from Germany, the continent's largest economy and the main engine of regional development.

Later on Tuesday, ECB President Christine Lagarde is scheduled to speak, and her words will be extensively monitored for any indications of future action.

Tuesday saw a little decline in oil prices as poor Chinese services activity numbers indicated more challenges for the top crude importer.

These losses, meanwhile, are relatively small since traders are still hoping that major OPEC+ members Saudi Arabia and Russia will extend their supply curbs this week, further tightening the market.

(Sources: investing.com, reuters.com)


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