AlQa'dah 6, 1436, Aug 21, 2015, SPA -- European shares fell to a seven-month low on Friday, tracking a drop in Asian equity markets after a survey showed Chinese factory activity contracted at its fastest pace since 2009, according to Reuters. The pan-European FTSEurofirst 300 was down 1.6 percent at 1,453.62 by 0703 GMT, with every sector in negative territory. The index hit its lowest level since January and was set for its biggest weekly fall of the year. The Caixin/Markit manufacturing index showed activity in China's factory sector shrank at its fastest pace in almost 6-1/2 years in August as domestic and export demand dwindled. Coming on the heels of weaker-than-expected data in July, it stoked fears of a slowdown in the world's second-biggest economy. U.S. stock futures fell to a 6 month low after the survey, while Japan's Nikkei stock index fell 3 percent, while copper and oil prices were both set for steep weekly losses, pegging back commodity related shares. The FTSEurofirst 300 recovered from its lows hit in early trade, however, with some saying that markets had overreacted to the negative consequences of lower commodity prices. The Greek stock market edged 0.2 percent lower, though banks rose 1.5 percent after an early fall. The FTSEurofirst 300 was supported of its lows after data showed an unexpected acceleration in Euro zone business growth this month, while German manufacturers grew more strongly than expected.
