Soft data, Syria strikes knock European markets

London (Sept 23)  European stock markets fell sharply Tuesday after some disappointing economic news and U.S.-led airstrikes against Islamic State militants in  Syria  . The falls came despite an unexpectedly strong Chinese manufacturing survey that helped ease worries in  Asia  over the state of the world's number 2 economy.

KEEPING SCORE: In Europe,  France's  CAC-40 fell 1.9 percent to 4,359 while  Germany's  DAX was 1.3 percent lower at 9,621. The  FTSE  100 index of leading British shares was down 1.4 percent at 6,680.  Wall Street  was poised for some modest falls at the open with both Dow futures and the broader S&P 500 futures down 0.2 percent.

 EUROPE  STAGNATING : The tone in European stock markets wasn't helped by further evidence showing that the 18-country eurozone economy is failing to find any renewed momentum. In its monthly survey, financial information company  Markit  said its purchasing managers' index for the eurozone — a closely watched gauge of business activity — fell to a nine-month low of 52.3 in September from the previous month's 52.5.

AIRSTRIKES IN  SYRIA  : Further weighing on sentiment in stock markets is the news that the U.S. and five Arab nations attacked the Islamic State group's headquarters in eastern  Syria  in nighttime raids. Land- and sea-based U.S. aircraft as well as Tomahawk cruise missiles launched from two  Navy  ships in the  Red Sea  and the northern Persian Gulf were used.

ANALYST TAKE: "The escalation of the conflict will of course raise questions over the risk appetite of many within the markets, who are no doubt worried about a major war which appears to be unfolding," said  Joshua Mahoney  , research analyst at  Alpari  .

 CHINA  FACTORIES: Earlier,  HSBC's  purchasing managers' index showing unexpectedly strong Chinese manufacturing in September, helping to ease fears of a sharper slowdown in the world's second-largest economy. The PMI rose to 50.5 from August's 50.2 on a 100-point scale on which numbers above 50 indicate expansion. That exceeded forecasts that called for a decline due to a slump in  China's  real estate market, a major driver of manufacturing activity.

 ASIA'S  DAY: The Shanghai Composite Index gained 0.9 percent to 2,309.72 and  Sydney's  S&P ASX 200 was up 1 percent at 5,415.70.  Hong Kong's  Hang Seng shed 0.3 percent to 23,879.36 and  Seoul's  Kospi fell 0.5 percent to 2,028.91.  Tokyo  was closed for a holiday.

CURRENCIES/ENERGY: The euro was up 0.3 percent at  $1.2890  while the dollar fell 0.2 percent to  108.51 yen  . In the oil markets, a barrel of benchmark crude rose  72 cents  to  $91.59  .

Source: AP