European markets close lower, post monthly declines

By Ovunc Kutlu

ANKARA (AA) - European stock exchanges closed lower Thursday despite positive macroeconomic data and posted monthly declines in September, while US indices turned negative after starting the day on a high note.

The STOXX Europe 600, which includes around 90% of the market capitalization of the European market in 17 countries, was down 0.22 points, or 0.05%, to close at 454.81. The index lost 3.8% this month.

London's FTSE 100 fell 21 points, or 0.31%, to 7,086, while Germany's DAX 30 index was off 104, or 0.68%, to 15,260. They were down 0.88% and 3.5%, respectively, in September.

The French CAC 40 decreased 40, or 0.62%, to 6,520, posting a monthly decline of 3.4%. Italy's FTSE MIB dove 53, or 0.21%, to 25,683 points, as it fell 1.8% this month.

Spain's IBEX 35 was the worst performer, plummeting 83 points, or 0.94%, to 8,796. This month, it fell 2%.

Daily losses in the indices came despite the UK's economy growing 5.5% in the second quarter, a significant increase from a 1.6% decline posted in the first quarter.

Consumer spending in France increased 1% in August, from the previous month when it posted a monthly decline of 2.4%. Germany's jobless figure declined by 30,000 this month.

While the unemployment rate in the EU fell to 6.8% in August, from 6.9% in July, the unemployment rate in the euro area fell to 7.5% -- down from 7.6% one month earlier.

- US turns negative

Despite kicking off the last trading day of September on a higher note, major indices in the US were in negative territory at 12.25 p.m. in New York.

The Dow Jones plummeted 447 points, or 1.3%, to 34,937, while the S&P 500 was down 35 points, or 0.8%, to 4,324.

The Nasdaq fell 36 points, or 0.25%, to 14,476.

Although the VIX volatility index was down below 22 at the opening bell, the fear index soared 7.4% to 24.23. The dollar index was at 94.40, hovering around its highest level in a year.

The yield on 10-year US Treasury notes, on the other hand, retreated from its highest level since June by falling 1.45% to 1.517%.

Precious metals were on a rally with gold rising 1.8% to $1,758 per ounce and silver jumping 2.2% to $22.

Oil prices were up, approaching three-year highs with a 1% gain. Brent crude was trading at $78.85 per barrel while the US benchmark West Texas Intermediate was at $75.56.