Euro area manufacturing contracts
Euro-area manufacturing kept contracting in November while factory output rose in China and Russia and may have expanded in the US, underscoring the divergence of the global economic recovery.
Manufacturing output in the 17-nation euro area shrank for a 16th month, with a gauge of manufacturing rising to 46.2 from 45.4 in October.
In China the Purchasing Managers' Index climbed 50.6 and in Russia it expanded for a 14th month. A reading below 50 indicates contraction.
Today's data adds to signs a recession in the currency bloc may extend into next year as leaders struggle to tackle the sovereign-debt crisis.
The Organisation for Economic Cooperation and Development (OECD) last week cut its growth forecasts and warned of the risk of a "major" global recession.
While it sees the US and China's economy grow 2 per cent and 8.5 per cent next year, the OECD cut its forecast for the euro-area to an 0.1 per cent contraction, compared with a previous prediction of 0.9 per cent of growth.
"The euro zone economy will remain the laggard of major economic blocs in 2013, but what we're starting to see in the manufacturing sector is that better activity elsewhere is starting help European exports," Nick Kounis, head of macro research at ABN Amro Bank in Amsterdam, said in a telephone interview.
"European domestic demand is dramatic, it's shrinking quite significantly."
The Stoxx Europe 600 Index advanced 0.6 per cent to 277.49 at 11.50am in London. The equity benchmark has rallied 19 percent from this year's low on June 4 as the European Central Bank announced an unlimited bond-buying plan and the Federal Reserve started a third round of asset purchases.
Futures on the Standard and Poor's 500 Index climbed 0.3 per cent today, while the MSCI Asia Pacific Index rose less than 0.1 per cent.
In the US, a report at 10am New York time will probably show that manufacturing cooled in November as business demand slowed and disruptions from hurricane Sandy limited production.