On Friday European stocks pared their gains after Germany’s September manufacturing orders unexpectedly fell, sparking concern that the region’s economic growth is faltering. US futures fluctuated while Asian shares rose.
The Stoxx Europe 600 Index rose 0.2 percent. in London, after earlier rising as much as 0.6 percent on Greece’s cancellation of a referendum on euro-area’s bailout package. The gauge has retreated 2.6 percent so far this week as the referendum call stunned investors. ECB officials unanimously lowered the benchmark interest rate by 25 basis points to 1.25 percent.
German factory orders unexpectedly plunged in September as demand from the euro region slumped, adding to signs the region’s debt crisis is damping growth in Europe’s largest economy.
Orders, adjusted for seasonal swings and inflation, fell 4.3 percent from August, when they dropped 1.4 percent, the Economy Ministry in Berlin said during the day. It’s the third straight month orders have declined.
Greek Prime Minister George Papandreou was facing a confidence vote in parliament during the day that will determine whether he survives or elections are called.
World leaders on Thursday expressed impatience with Europe’s inability to contain its two-year financial crisis. With Greece’s government at risk of collapsing as soon as on Friday Group of 20 chiefs meeting in Cannes, France, pushed the region’s policy makers to implement a week-old rescue plan that looks to be unraveling.
Papandreou abandoned his planned referendum on his country’s bailout after it split his party, roiled financial markets and drew warnings from euro leaders that it may cost Greece its membership in the 17-nation currency club.
Japanese stocks rose for the first time in four days as the Nikkei 225 Stock Average rose 1.9 percent and the Topix Index advanced 1.8 percent.