Global stocks trim losses on positive US economic data

Better-than-expected US economic indicators helped European stocks trim losses and pushed Wall Street higher,easing tensions among investors worried about a downturn in the global manufacturing sector.

Better-than-expected US economic indicators helped European stocks trim losses and pushed Wall Street higher,easing tensions among investors worried about a downturn in the global manufacturing sector.

After trading lower,Britains FTSE 100 ended the day 0.5 per cent higher at 5,418.65,while Frances CAC-40 gained 0.3 per cent to 3,265.83. Germanys DAX still closed lower,however,by 0.9 per cent at 5,730.63.

US stocks also recovered from early losses to steady. The Dow industrials was up 0.1 per cent at 11,625.38,while the broader S&P 500 was 0.1 percent higher at 1,219.94.

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The upbeat US data will encourage investors before Fridays important jobs report for August. The payrolls data are one of the most closely watched economic indicators because they signal the strength and confidence of consumer spending in the worlds largest economy. The US economy is expected to have added 80,000 jobs,too little to bring the unemployment rate down.

Earlier in Asia,traders had built on a strong performance on Wall Street the previous day driven by hopes that the Federal Reserve may unveil more monetary stimulus to push indexes mostly higher.

Japans benchmark Nikkei 225 advanced 1.2 per cent to close at 9,060.80 while Hong Kongs Hang Seng edged up 0.2 per cent to close at 20,585.33.

South Koreas Kospi was nearly unchanged,ending at 1,880.70 and Singapores Straits Times index declined.

The euro dropped to $1.4272 from $1.4380.

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In London,Brent crude for October delivery was down 5 cents $114.80 on the ICE Futures exchange.