Chinese Business

Six million people were on Friday under Covid lockdown in a Chinese city home to the world’s largest iPhone factory, after clashes between police and workers furious over pay.

Authorities have ordered residents of eight districts in Zhengzhou, in the central province of Henan, not to leave the area for the next five days, building barriers around “high-risk” apartment buildings and setting up checkpoints to restrict travel.

There have been only a handful of coronavirus cases in the city.

The orders follow protests by hundreds of employees over conditions and pay at Foxconn’s vast iPhone factory on the outskirts of the city, with fresh images of rallies emerging Friday.

Video footage published on social media and geolocated by AFP showed a large group of people walking down a street in the east of the city, some holding signs.

“So many people,” a man can be heard saying. AFP was unable to verify precisely when the protests took place. 

And after scores of workers left the plant Thursday with payouts of 10,000 yuan ($1,400) from Foxconn, posts on Chinese short-video apps Douyin and Kuaishou said the Taiwanese tech giant was turning away many of the thousands of people that had answered its hiring ads after a raft of departures in October.

Many of those who have arrived to take up newly vacant posts at the factory are now stuck in quarantine hotels outside the plant, multiple workers told AFP.

“We are in a quarantine hotel, and have no way of going to the Foxconn campus,” one worker who asked to remain anonymous said.

Another employee said those turned away had been promised 10,000 yuan in compensation for being forced to quarantine, but received only a fraction of that amount.

“They are not letting us start the job and we cannot return home, Zhengzhou is under lockdown,” one worker forced to quarantine in nearby Ruzhou city, after being promised employment at Foxconn, told AFP.

He added that there were multiple small-scale protests in other Henan cities by Foxconn workers made to quarantine and unable to start work.

The unrest in Zhengzhou comes against the backdrop of mounting public frustration over the government’s zero-tolerance approach to Covid, which compels local authorities to impose gruelling lockdowns, travel restrictions and mass testing.

With China’s daily caseload at 33,000 on Friday — a record for the country of 1.4 billion — the unrelenting zero-Covid push has sparked sporadic protests and hit productivity in the world’s second-largest economy.

In the southeastern manufacturing hub of Guangzhou, millions of people have been ordered not to leave their homes without a negative virus test.

Social media footage published on Friday and geolocated by AFP showed residents of the city’s Haizhu district dismantling barricades and throwing objects at police in hazmat attire.

“What are you doing? What are you doing?” one police officer holding a shield can be heard asking as he and his colleagues back away from the projectiles.

Asian markets were mixed Friday at the end of a week that has seen hopes the Federal Reserve will tone down its monetary tightening campaign offset by fresh lockdown fears as Covid-19 cases surge in China.

With Wall Street closed for the Thanksgiving break, trading was light with few catalysts to drive action on trading floors and investors now looking ahead to the release of US jobs data next week.

The mood across markets has picked up this month as a series of indicators suggested the world’s top economy was showing signs of weakness after the Fed ramped up interest rates.

The standout reports were consumer and wholesale inflation, which came in much lower than forecast and provided the central bank with room to row back on its hawkishness. 

And while a selection of Fed officials lined up to warn there was more tightening to come, there is an expectation that the days of bumper 75-basis-point increases are gone.

That has slightly eased worries that the sharp rise in borrowing costs could tip the US economy into recession, though many observers still see a contraction coming.

Asian equities struggled to end the week on a positive note, however, with Tokyo, Hong Kong, Singapore, Seoul, Manila and Jakarta all down. There were gains in Shanghai, Sydney, Wellington and Taipei.

Regional sentiment was being sapped by ongoing fears about the spike in Covid cases in China, which authorities are trying to contain with a series of targeted measures in big cities including Beijing and Shanghai, though they are short of full-on lockdowns.

Still, SPI Asset Management’s Stephen Innes said there appeared to be less concern about the government’s reaction as it looks to ease parts of its strict Covid-zero strategy.

“Investors are recognising it’s normal for cases to increase as the Chinese economy begins its long and winding road to normalcy,” he said in a commentary.

“So stock and currency market investors are tentatively looking through the current lockdown regime while betting on the more optimistic interpretation that China is hitting the limits of ‘Covid-zero’ and the authorities’ efforts to loosen restrictions will continue.”

– Key figures around 0230 GMT –

Tokyo – Nikkei 225: DOWN 0.3 percent at 28,286.94 (break)

Hong Kong – Hang Seng Index: DOWN 1.3 percent at 17,435.15

Shanghai – Composite: UP 0.3 percent at 3,097.12

Euro/dollar: UP at $1.0415 from $1.0411 on Thursday

Dollar/yen: UP at 138.75 yen from 138.39 yen

Pound/dollar: DOWN at $1.2100 from $1.2131

Euro/pound: UP at 86.02 pence from 85.82 pence

West Texas Intermediate: UP 0.4 percent at $78.26 per barrel

Brent North Sea crude: UP 0.1 percent at $85.46 per barrel

New York – Dow: Closed for a holiday

London – FTSE 100: FLAT at 7,466.60 (close)

Stock markets mostly rose Thursday and the dollar largely weakened after minutes from the Federal Reserve’s latest policy meeting suggested it could slow the pace of its rate hikes.

The news provided traders with a cushion against concerns about surging Covid-19 cases in China that have fanned speculation authorities will revert to lockdowns and other economically debilitating measures to fight the outbreak.

Oil prices rallied slightly later Thursday after earlier extending sharp losses from the previous day fuelled by worries about the impact on demand from China’s Covid outbreaks.

Wednesday’s much-anticipated minutes showed most US central bank chiefs felt smaller increases would “likely soon be appropriate” as the economy shows signs of weakness following almost a year of monetary tightening.

“Equities are revelling in the wake of the… minutes after the Fed telegraphed a downshift from jumbo to extra-large rate hikes,” said SPI Asset Management’s Stephen Innes.

“A commitment to moving toward restrictive monetary policy remains intact, but the (policy board) is ready to slow the path toward that destination.”

He added that a less aggressive Fed “should pave the runway for take-off in Asia, fuelled by expectations of China’s reopening by March next year”.

Bets were growing on officials announcing a 50-basis-point lift at their December gathering, down from four straight 75-point hikes.

The latest indicators showed the manufacturing and services sectors continued to contract last month, while jobless claims picked up.

The developments allowed Wall Street traders to head off to their Thanksgiving break with a spring in their step, the S&P 500 ending at a two-month high as they finally see a glimmer of light at the end of the tunnel after a painful year.

Asia and Europe mostly followed suit.

Kuala Lumpur surged more than three percent and the ringgit held gains after opposition leader Anwar Ibrahim was named prime minister, ending a days-long leadership impasse after inconclusive polls that had rattled Malaysia’s markets.

The more risk-on environment was also reflected in a further drop in the dollar against its peers, having surged for much of the year as traders bet on ever-higher US interest rates.

Investors were keeping a close watch also on China after it announced a record number of new Covid cases, as authorities worked to curb the spread with snap lockdowns, mass testing and travel restrictions.

While officials are trying more targeted measures to contain the disease, concerns remain that they will resort to the painful city-wide shutdowns seen in Shanghai earlier this year as part of the zero-Covid strategy, which hammered the economy.

However, that worry has been tempered somewhat after China signalled fresh support measures aimed at boosting growth, with the State Council saying tools would be used to ensure liquidity in markets.

The comments led to talk of another cut in the amount of cash that banks must keep in reserve, freeing them to lend more.

– Key figures around 1630 GMT –

London – FTSE 100: FLAT at 7,466.60 points (close)

Paris – CAC 40: UP 0.4 percent at 6,707.32 (close)

Frankfurt – DAX: UP 0.8 percent at 14,539.56 (close)

EURO STOXX 50: UP 0.4 percent at 3,961.99

Tokyo – Nikkei 225: UP 1.0 percent at 28,383.09 (close)

Hong Kong – Hang Seng Index: UP 0.8 percent at 17,660.90 (close)

Shanghai – Composite: DOWN 0.3 percent at 3,089.31 (close)

New York – Dow: UP 0.3 percent at 34,194.06 (close)

Euro/dollar: UP at $1.411 from $1.0401 on Wednesday

Dollar/yen: DOWN at 138.39 yen from 139.52 yen

Pound/dollar: UP at $1.2131 from $1.2064

Euro/pound: DOWN at 85.82 pence from 86.18 pence

West Texas Intermediate: FLAT at $77.91 per barrel

Brent North Sea crude: DOWN 0.4 percent at $85.10 per barrel

Stock markets mostly rose Thursday and the dollar largely weakened after minutes from the Federal Reserve’s latest policy meeting suggested it could slow the pace of its rate hikes.

The news provided traders with a cushion against concerns about surging Covid-19 cases in China that have fanned speculation authorities will revert to lockdowns and other economically debilitating measures to fight the outbreak.

Oil prices extended Wednesday’s sharp losses fuelled by worries about the impact on demand from China’s Covid outbreaks.

Wednesday’s much-anticipated minutes showed most US central bank chiefs felt smaller increases would “likely soon be appropriate” as the economy shows signs of weakness following almost a year of monetary tightening.

“Equities are revelling in the wake of the… minutes after the Fed telegraphed a downshift from jumbo to extra-large rate hikes,” said SPI Asset Management’s Stephen Innes.

“A commitment to moving toward restrictive monetary policy remains intact, but the (policy board) is ready to slow the path toward that destination.”

He added that a less aggressive Fed “should pave the runway for take-off in Asia, fuelled by expectations of China’s reopening by March next year”.

Bets were growing on officials announcing a 50-basis-point lift at their December gathering, down from four straight 75-point hikes.

The latest indicators showed the manufacturing and services sectors continued to contract last month, while jobless claims picked up.

The developments allowed Wall Street traders to head off to their Thanksgiving break with a spring in their step, the S&P 500 ending at a two-month high as they finally see a glimmer of light at the end of the tunnel after a painful year.

Asia and Europe mostly followed suit.

Kuala Lumpur surged more than three percent and the ringgit held gains after opposition leader Anwar Ibrahim was named prime minister, ending a days-long leadership impasse after inconclusive polls that had rattled Malaysia’s markets.

The more risk-on environment was also reflected in a further drop in the dollar against its peers, having surged for much of the year as traders bet on ever-higher US interest rates.

Investors were keeping a close watch also on China after it announced a record number of new Covid cases, as authorities worked to curb the spread with snap lockdowns, mass testing and travel restrictions.

While officials are trying more targeted measures to contain the disease, concerns remain that they will resort to the painful city-wide shutdowns seen in Shanghai earlier this year as part of the zero-Covid strategy, which hammered the economy.

However, that worry has been tempered somewhat after China signalled fresh support measures aimed at boosting growth, with the State Council saying tools would be used to ensure liquidity in markets.

The comments led to talk of another cut in the amount of cash that banks must keep in reserve, freeing them to lend more.

– Key figures around 1130 GMT –

London – FTSE 100: UP 0.1 percent at 7,475.73 points

Paris – CAC 40: UP 0.6 percent at 6,716.21

Frankfurt – DAX: UP 0.9 percent at 14,550.77

EURO STOXX 50: UP 0.5 percent at 3,967.92

Tokyo – Nikkei 225: UP 1.0 percent at 28,383.09 (close)

Hong Kong – Hang Seng Index: UP 0.8 percent at 17,660.90 (close)

Shanghai – Composite: DOWN 0.3 percent at 3,089.31 (close)

New York – Dow: UP 0.3 percent at 34,194.06 (close)

Euro/dollar: DOWN at $1.0391 from $1.0401 on Wednesday

Dollar/yen: DOWN at 138.28 yen from 139.52 yen

Pound/dollar: UP at $1.2099 from $1.2064

Euro/pound: DOWN at 85.91 pence from 86.18 pence

West Texas Intermediate: DOWN 0.6 percent at $77.44 per barrel

Brent North Sea crude: DOWN 0.9 percent at $84.63 per barrel

Employees are leaving a vast Foxconn iPhone factory in central China over working conditions and Covid restrictions, relieved to be taking pay-offs home after angry protests at the Taiwanese tech giant’s plant.

The workers are leaving the plant in Zhengzhou in the wake of bloody clashes with police, in which more than a dozen protesters were hurt, furious about Foxconn’s failure to deliver promised bonuses, employees  told AFP. 

“The contract suddenly changed and everyone was unhappy, in addition the previous incidents at Foxconn made everyone lose trust, so the protests happened,” one female worker who wished to remain anonymous told AFP.

Foxconn has been desperate to keep operations ticking along at the factory, the world’s biggest manufacturer of iPhones, after a handful of Covid cases forced it to lock down the facility.

Now the firm is offering payouts to those that leave, with employees taking to social media Thursday to show they had received bonuses of 10,000 yuan ($1,400) in return for terminating their contracts.

Several coaches are parked outside dormitories in the background of several videos, supposedly there to take staff home. 

“Everyone’s got their money and are about to leave,” the female worker said.

“I’m pretty satisfied, workers who still want this or that should not be too greedy,” she said.

Foxconn also appears keen to placate those who were beaten by police, with another worker telling AFP that injured colleagues received an additional 500 yuan on top of their leaving bonus.

Foxconn did not respond to an AFP request for comment.

However, screenshots of a company notice circulating online Thursday show that new employees who wished to leave would be offered 10,000 yuan to cover lost salary, quarantine and transport costs. 

The notice said employees who registered to end their contracts would be paid 8,000 yuan and given another 2,000 yuan upon boarding buses arranged by the company back to their hometowns.

– Protesters beaten –

Footage of the protests shared with AFP and captured by a factory worker showed one person lying motionless on the ground next to a man in a blood-spattered jacket having his head bound in an effort to staunch a wound.

Another clip shows dozens of hazmat-clad personnel wielding batons and chasing employees, one of whom is knocked to the ground before appearing to be kicked in the head.

The worker who shared the videos and who was present at the protests estimated that around 20 people were wounded in the clashes, some of whom were taken to hospital. He requested anonymity to protect his safety.

He told AFP the confrontations broke out after new employees who signed an agreement with the factory to work at least 30 days in return for a one-time payment of 3,000 yuan ($420) suddenly saw the figure slashed to just 30 yuan.

Foxconn has blamed a “technical error” in its payment systems for the non-payment, and promised employees that all salaries would be paid in line with company policies.

The unrest now seems to have cooled down, one worker told AFP.

“The new recruits should have all left, now everything is normal,” the worker said.

One video published Thursday on the short-video platform Kuaishou shows hundreds of workers waiting to leave the dormitory quarters carrying suitcases.

“Get money and return home,” read the caption, punctuated with a smiley emoji.

Asian markets rallied Thursday and the dollar weakened further after minutes from the Federal Reserve’s latest policy meeting suggested it could slow the pace of its rate hikes.

The news provided traders with a cushion against concerns about surging Covid-19 cases in China that have fanned speculation authorities will revert to lockdowns and other economically debilitating measures to fight the outbreak.

Wednesday’s much-anticipated minutes showed most US central bank chiefs felt smaller increases would “likely soon be appropriate” as the economy shows signs of weakness following almost a year of monetary tightening.

Bets were growing on officials announcing a 50-basis-point lift at their December gathering, down from four straight 75-point hikes.

The latest indicators showed the manufacturing and services sectors continued to contract last month, while jobless claims picked up.

The developments allowed Wall Street traders to head off to their Thanksgiving break with a spring in their step, the S&P 500 ending at a two-month high as they finally see a glimmer of light at the end of the tunnel after a painful year.

Asia mostly followed suit, with Tokyo, Hong Kong, Mumbai, Sydney, Seoul, Singapore, Taipei, Manila and Jakarta all positive, though Shanghai dipped and Wellington barely moved.

Kuala Lumpur surged more than three percent and the ringgit held gains after opposition leader Anwar Ibrahim was named prime minister, ending a days-long leadership impasse after inconclusive polls that had rattled Malaysia’s markets.

London was flat at the open, while Paris and Frankfurt edged up.

The more risk-on environment was also reflected in a further drop in the dollar against its peers, having surged for much of the year as traders bet on ever-higher US interest rates.

“Equities are revelling in the wake of the… minutes after the Fed telegraphed a downshift from jumbo to extra-large rate hikes,” said SPI Asset Management’s Stephen Innes.

“A commitment to moving toward restrictive monetary policy remains intact, but the (policy board) is ready to slow the path toward that destination.”

He added that a less aggressive Fed “should pave the runway for take-off in Asia, fuelled by expectations of China’s reopening by March next year”.

Investors are keeping a close watch on China after it announced a record number of new Covid cases on Thursday as authorities worked to curb the spread with snap lockdowns, mass testing and travel restrictions.

While officials are trying more targeted measures to contain the disease, concerns remain that they will resort to the painful city-wide shutdowns seen in Shanghai earlier this year as part of the zero-Covid strategy, which hammered the economy.

However, that worry has been tempered somewhat after China signalled fresh support measures aimed at boosting growth, with the State Council saying tools would be used to ensure liquidity in markets. 

The comments led to talk of another cut in the amount of cash that banks must keep in reserve, freeing them to lend more.

Oil prices extended Wednesday’s sharp losses fuelled by worries about the impact on demand from China’s Covid outbreaks.

SPI’s Innes added that a reported Group of Seven consideration for capping Russian crude at $65-$70 a barrel was higher than expected and not far from the present discount of the contract. That meant the move would likely not hit exports materially, he said.

– Key figures around 0820 GMT –

Tokyo – Nikkei 225: UP 1.0 percent at 28,383.09 (close)

Hong Kong – Hang Seng Index: UP 0.8 percent at 17,660.90 (close)

Shanghai – Composite: DOWN 0.3 percent at 3,089.31 (close)

London – FTSE 100: FLAT at 7,467.02

Euro/dollar: UP at $1.0410 from $1.0401 on Wednesday

Dollar/yen: DOWN at 139.10 yen from 139.52 yen

Pound/dollar: UP at $1.2074 from $1.2064

Euro/pound: UP at 86.20 pence from 86.18 pence

West Texas Intermediate: DOWN 0.4 percent at $77.62 per barrel

Brent North Sea crude: DOWN 0.5 percent at $85.00 per barrel

New York – Dow: UP 0.3 percent at 34,194.06 (close)

Asian markets rallied Thursday and the dollar weakened further after minutes from the Federal Reserve’s latest policy meeting suggested it could slow its pace of rate hikes.

The news provided traders with a cushion against concerns about surging Covid cases in China that have fanned speculation authorities will revert to lockdowns and other economically debilitating measures to fight the outbreak.

Wednesday’s much-anticipated minutes showed most US central bank chiefs felt smaller increases would “likely soon be appropriate” as the economy shows signs of weakness following almost a year of monetary tightening.

Bets were growing on officials announcing a 50-basis-point lift at their December gathering, down from four straight 75-point hikes, with officials keeping tabs on economic data.

The latest indicators showed the manufacturing and services sectors continued to contract last month, while jobless claims picked up.

The developments allowed Wall Street traders to head off to their Thanksgiving break with a spring in their step, the S&P 500 ending at a two-month high as they finally see a glimmer of light at the end of the tunnel after a painful year.

And Asia followed suit, with Tokyo, Hong Kong, Shanghai, Sydney, Seoul, Singapore, Taipei, Manila and Jakarta all in the red.

The more risk-on environment was also reflected in a further drop in the dollar against its peers, having surged for much of the year as traders bet on ever-higher US interest rates.

“Equities are revelling in the wake of the… minutes after the Fed telegraphed a downshift from jumbo to extra-large rate hikes,” said SPI Asset Management’s Stephen Innes.

“A commitment to moving toward restrictive monetary policy remains intact, but the (policy board) is ready to slow the path toward that destination.”

He added that a less aggressive Fed “should pave the runway for take-off in Asia, fuelled by expectations of China’s reopening by March next year”.

Investors are keeping a close watch on China after it announced a record number of new Covid cases on Thursday as authorities worked to curb the spread with snap lockdowns, mass testing and travel restrictions.

While officials are trying more targeted measures to contain the disease, there remains a concern that they will resort to the painful city-wide shutdowns seen in Shanghai earlier this year as part of the country’s zero-Covid strategy, which hammered the economy.

However, the concern has been tempered somewhat after China signalled fresh support measures aimed at boosting growth, with the State Council saying tools would be used to ensure liquidity in markets. 

The comments led to talk of another cut in the amount of cash banks must keep in reserve, freeing them to lend more.

– Key figures around 0230 GMT –

Tokyo – Nikkei 225: UP 1.2 percent at 28,448.58 (break)

Hong Kong – Hang Seng Index: UP 0.5 percent at 17,617.28

Shanghai – Composite: UP 0.3 percent at 3,106.13

Euro/dollar: UP at $1.0424 from $1.0401 on Wednesday

Dollar/yen: DOWN at 138.82 yen from 139.52 yen

Pound/dollar: UP at $1.2088 from $1.2064

Euro/pound: UP at 86.23 pence from 86.18 pence

West Texas Intermediate: DOWN 0.2 percent at $77.77 per barrel

Brent North Sea crude: DOWN 0.3 percent at $85.14 per barrel

New York – Dow: UP 0.3 percent at 34,194.06 (close)

London – FTSE 100: UP 0.2 percent at 7,465.24 (close)

Wall Street stocks rose again Wednesday following Federal Reserve minutes signaling a moderation in its aggressive policy to counter inflation, while oil prices slumped amid worries over demand.

US stocks followed up Tuesday’s rally to close higher again after a majority of Fed policymakers found that a slower pace of interest rate hikes would “likely soon be appropriate,” according to minutes of their meeting this month.

Analysts at Oxford Economics said the minutes “strengthen our conviction in our forecast for a 50-basis point rate hike at the December meeting” after the central bank previously engineered four straight 75-basis point hikes.

The minutes helped US stocks recover from an earlier swoon, while the dollar retreated.

All three major equity indices finished higher, with the S&P 500 adding 0.6 percent. 

US markets will be closed on Thursday in observance of the Thanksgiving holiday and will end trading at midday on Friday.

Earlier, reports showed surprisingly strong orders of big-ticket US manufactured goods in October, while new home sales defied expectations and rose during the same month.

Weekly jobless claims ticked higher, while a University of Michigan survey of consumer sentiment topped expectations.

Elsewhere, Paris and London also closed in positive territory, while Frankfurt ended flat.

The eurozone’s composite purchasing managers index (PMI), a key economic indicator, improved from 47.3 in October to 47.8 in November, S&P Global said.

But activity languished under 50 — signifying the fifth consecutive month of economic contraction as inflation spikes, and dampening the outlook for the fourth quarter.

Oil prices slid on fears of more painful Covid lockdowns in China that could ravage the Asian giant’s energy demand.

The main American oil contract, the West Texas Intermediate, briefly sank by more than five percent on Wednesday, eventually closing more than three percent down.

“With China also grappling with record numbers of Covid cases the macro-outlook has continued to deteriorate for oil this week, with prices on course to decline for the third week in a row,” said Michael Hewson, chief market analyst at CMC Market UK.

Analysts said oil prices had not been significantly affected by efforts of G7 countries to set a price cap on Russian oil. 

The group is looking at a range of between $65 and $70 a barrel, which is already the range the commodity trades at; that means the measure is unlikely to remove oil supply from the market, analysts said.

– Key figures around 2130 GMT –

New York – Dow: UP 0.3 percent at 34,194.06 (close)

New York – S&P 500: UP 0.6 percent at 4,027.26 (close)

New York – Nasdaq: UP 1.0 percent at 11,285.32 (close)

London – FTSE 100: UP 0.2 percent at 7,465.24 (close)

Paris – CAC 40: UP 0.3 percent at 6,679.09 (close)

Frankfurt – DAX: FLAT at 14,427.59 (close)

EURO STOXX 50: UP 0.4 percent at 3,946.44 (close)

Hong Kong – Hang Seng Index: UP 0.6 percent at 17,523.81 (close)

Shanghai – Composite: UP 0.3 percent at 3,096.91 (close)

Tokyo – Nikkei 225: closed for a holiday

Euro/dollar: UP at $1.0401 from $1.0304 on Tuesday

Dollar/yen: DOWN at 139.52 yen from 141.23 yen

Pound/dollar: UP at $1.2064 from $1.1886

Euro/pound: DOWN at 86.18 pence from 86.69 pence

West Texas Intermediate: DOWN 3.6 percent at $77.94 per barrel

Brent North Sea crude: DOWN 3.3 percent at $85.41 per barrel

European and US stocks made modest gains on Wednesday on news that major economies contracted in November and as traders looked ahead to Federal Reserve committee minutes.

Paris and London closed in positive territory and Wall Street gained around 0.2 percent in early deals, while Frankfurt ended flat.

The eurozone’s composite purchasing managers index (PMI), a key economic indicator, improved from 47.3 in October to 47.8 in November, S&P Global said.

But activity languished under 50 — signifying the fifth consecutive month of economic contraction as inflation spikes and dampening the outlook for the fourth quarter.

The United States’ composite PMI hit a three-month low of 46.3 in November, down from the October figure of 48.2, with services business activity and manufacturing output data also falling.

Traders were expecting the results of a meeting of the influential Federal Open Market Committee in the United States.

“It’s been a fairly lacklustre session as investors weigh up the release of tonight’s FOMC minutes against a backdrop of a weakening economic outlook,” noted Michael Hewson, chief market analyst at CMC Market UK.

“Stock markets have remained supported as optimism over a less hawkish Fed is outweighing growth concerns. But I can’t imagine investors will continue to take excessive risk heading into a potential recession,” said City Index analyst Fawad Razaqzada.

– ‘Recession is inevitable’ –

Britain’s composite PMI was fractionally higher, from 48.2 to 48.3 in November, but that marked the fourth straight contraction.

The news comes after the UK government recently confirmed that the nation’s economy was in recession, with inflation sitting at a 41-year high.

“Both data suggest that recession is inevitable in both eurozone and UK economies, with the UK likely to be designated officially before the eurozone due to the weaker Q3 data,” Monex Europe analyst Maria Marcos told AFP.

Oil prices slid on disappointing US data and fears of more painful Covid lockdowns in China that could ravage the Asian giant’s energy demand.

The main American oil contract, West Texas Intermediate, briefly sank by more than five percent on Wednesday on China concerns and the underwhelming US data.

Reports that the European Union is considering a price cap on Russian crude and pessimistic global growth forecasts by the OECD are also holding back prices, according to analysts.

“With China also grappling with record numbers of Covid cases the macro-outlook has continued to deteriorate for oil this week, with prices on course to decline for the third week in a row,” said Hewson.

The dollar sank more than one percent against the British pound and weakened against other rival currencies as investors mulled mixed earnings and economic data.

“The US dollar fell sharply again today as concerns intensified that the economy is heading for a recession after a poor set of PMI numbers came out from the services and manufacturing sectors,” said Razaqzada.

“An economic slowdown is expected to weigh on inflation, reducing the need for the Fed to maintain an aggressive tightening stance.”

– Key figures around 1630 GMT –

London – FTSE 100: UP 0.2 percent at 7,465.24 points (close)

Paris – CAC 40: UP 0.3 percent at 6,679.09 (close)

Frankfurt – DAX: FLAT at 14,427.59 (close)

EURO STOXX 50: UP 0.4 percent at 3,946.44

New York – Dow: UP 0.2 percent at 34,175.97

Hong Kong – Hang Seng Index: UP 0.6 percent at 17,523.81 (close)

Shanghai – Composite: UP 0.3 percent at 3,096.91 (close)

Tokyo – Nikkei 225: closed for a holiday

Euro/dollar: UP at $1.0367 from $1.0304 on Tuesday

Dollar/yen: DOWN at 139.69 yen from 141.23 yen

Pound/dollar: UP at $1.2071 from $1.1886

Euro/pound: DOWN at 85.89 pence from 86.69 pence

West Texas Intermediate: DOWN 4.5 percent at $77.30 per barrel

Brent North Sea crude: DOWN 3.8 percent at $84.34 per barrel

European and US stock markets wavered Wednesday on news that the eurozone and UK economies shrank in November but by less than the previous month.

In mid-afternoon trading, Frankfurt equities fell 0.1 percent and London won 0.2 percent, while Paris and New York flatlined.

Oil prices slid on fears of more painful Covid lockdowns in China that could ravage the Asian giant’s energy demand.

The eurozone’s composite purchasing managers index (PMI), a key economic indicator, improved from 47.3 in October to 47.8 in November, S&P Global said.

However, activity languished under 50 — signifying the fifth consecutive month of economic contraction as inflation spikes. 

Britain’s composite PMI was also fractionally higher, from 48.2 to 48.3 in November, but that marked the fourth straight contraction.

– ‘Recession is inevitable’ –

The news comes after the UK government recently confirmed that the nation’s economy was in recession, with inflation sitting at a 41-year high.

“Both data suggest that recession is inevitable in both eurozone and UK economies, with the UK likely to be designated officially before the eurozone due to the weaker Q3 data,” Monex Europe analyst Maria Marcos told AFP.

“Despite the early volatility, all indices across the eurozone currently sit close to their opening levels, suggesting that the positive surprise in the data wasn’t enough to provide good news for investors.”

Elsewhere, Asian stocks rose on hopes that the Federal Reserve will carry out smaller US rate hikes at its next few meetings after inflation cooled in the world’s biggest economy.

But there is growing concern that a surge in China’s Covid-19 cases will see officials impose more economically-damaging restrictions.

Traders were also keeping tabs on protests at the world’s largest iPhone factory in China as Foxconn workers grow increasingly angry at the country’s long-running Covid curbs.

The US dollar sank more than one percent against the British pound as investors also mulled mixed earnings and economic data, while the euro steadied against the dollar and yen.

“An economic slowdown is expected to weigh on inflation, reducing the need for the Fed to maintain an aggressive tightening stance,” said City Index analyst Fawad Razaqzada.

– Key figures around 1430 GMT –

London – FTSE 100: UP 0.2 percent at 7,463.70 points

Paris – CAC 40: FLAT at 6,657,20

Frankfurt – DAX: DOWN 0.1 percent at 14,403.30

EURO STOXX 50: UP 0.1 percent at 3,934.20

New York – Dow: FLAT at 34,080.30

Hong Kong – Hang Seng Index: UP 0.6 percent at 17,523.81 (close)

Shanghai – Composite: UP 0.3 percent at 3,096.91 (close)

Tokyo – Nikkei 225: closed for a holiday

Euro/dollar: UP at $1.0332 from $1.0304 on Tuesday

Dollar/yen: DOWN at 140.87 yen from 141.23 yen

Pound/dollar: UP at $1.1977 from $1.1886

Euro/pound: DOWN at 86.25 pence from 86.69 pence

West Texas Intermediate: DOWN 3.2 percent at $78.38 per barrel

Brent North Sea crude: DOWN 2.8 percent at $85.24 per barrel