European Markets Weakened In Late Trade & Finished Mostly Lower

(RTTNews) - The majority of the European markets ended Friday's session with modest losses. The FTSE 100 of the U.K. fared better than most, due to the growth in British manufacturing. The markets pared their losses slightly following the release of the better than expected U.S. manufacturing data, but then drifted further in late trade.

China's manufacturing growth hit an 18-month high in October as firms stepped up production, in a sign that the economy is gradually stabilizing, a survey by the China Federation of Logistics and Purchasing and the National Bureau of Statistics revealed Friday.

The purchasing managers' index, a measure of factory sector performance, rose to 51.4 in October from 51.1 in September. Economists expected a more modest rise to 51.2.

The International Monetary Fund has urged Germany to keep in mind the interests of the international community while addressing Europe's policy challenges.

"While Germany and its European partners may have an understandable tendency to focus on this transition, there is much else going on in the world that will profoundly affect you and your economic interests," IMF's First Deputy Managing Director David Lipton said during a speech in Berlin on Thursday.

He warned that Germany would face grave risks in the event that global interconnectedness is mismanaged. "My appeal to you tonight is that as Germany carries on the work of the European project, it should lift its sights to the global horizon as well," Lipton said.

The Euro Stoxx 50 index of eurozone bluechip stocks declined by 0.57 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, lost 0.28 percent.

The DAX of Germany dropped by 0.29 percent and the CAC 40 of France fell by 0.62 percent. The FTSE 100 of the U.K. climbed by 0.05 percent, but the SMI of Switzerland decreased by 0.15 percent.

In Frankfurt, Volkswagen gained 0.67 percent. JPMorgan increased its price target on the stock.

Wacker Chemie fell by 3.64 percent. Citigroup downgraded the stock to ''Sell'' from ''Neutral.''

In Paris, Renault dropped by 4.99 percent. Its partner, Japanese automaker Nissan Motor Co., cut its annual earnings forecast.

Air France-KLM declined by 3.80 percent. Credit Suisse downgraded the stock to ''Underperform'' from ''Neutral.''

In London, Meggitt sank by 10.15 percent. The aerospace, defence and energy group said underlying trading during July 1 to October 31 was slightly below expectations, amid short term production difficulties at Meggitt Sensing Systems and the timing of contract wins and project milestones in one of its energy businesses.

Royal Bank of Scotland dropped by 7.23 percent. The lender reported a narrower loss for the third-quarter, but added that in light of its new strategy to deal with high risk assets, it expects a significant increase in impairments in the fourth quarter, which is likely to result in a substantial loss for the full year.

Vodafone advanced by 2.83 percent, on a report that US telecommunications giant AT&T is exploring a takeover of the company.

ASM International climbed by 3.89 percent in Amsterdam, after reporting third-quarter results.

A sharp pick up in both domestic demand and export business boosted the U.K. manufacturing activity further in October, continuing the upward trend seen in recent months, in a sign that second quarter's strong economic growth would be sustained in the final months of the year.

At 56, the purchasing managers' index for the manufacturing sector stayed above the neutral mark of 50 for the seventh consecutive month in October, data from a survey conducted by Markit Economics and the Chartered Institute of Purchasing and Supply (CIPS) showed Friday. The pace of expansion slowed from September's downwardly revised score of 56.3.

Activity in the U.S. manufacturing sector unexpectedly expanded at a slightly faster rate in the month of October, according to a report released by the Institute for Supply Management on Friday. The ISM said its purchasing managers' index inched up to 56.4 in October from 56.2 in September, with a reading above 50 indicating an increase in manufacturing activity.

The modest increase came as a surprise to economists, who had expected the index of manufacturing activity to dip to 55.0.