Global shares give mixed signals on economic recovery

Tokyo Shares rose in early European trading on Friday after retreating in Asia as the latest batch of economic data provided mixed signals about prospects for the recovery from the pandemic.

Two surveys released Friday showed Chinese manufacturing expanded in April but growth appeared to be slowing. Figures showed Europe's economy contracted in the first three months of the year, while the U.S. economy steamed ahead, growing at a 6.4per cent annual pace.

Major recent coronavirus outbreaks and slow progress in vaccinations are adding to worries about the outlook for economies in Asia and Europe. France's CAC 40 inched down less than 0.1per cent in early trading to 6,300.06, while Germany's DAX added 0.4per cent to 15,212.91. Britain's FTSE 100 added 0.3per cent to 6,982.92. U.S. shares were set for a slow start, the future for the Dow industrials down nearly 0.2per cent at 33,900. S&P 500 futures fell 0.2per cent to 4,193.12. The contraction in the 19 countries that use the euro currency compares to a robust rebound underway in the United States.

The second straight quarter of falling output, following contraction in the fourth quarter of 2021, confirms Europe's double-dip pandemic recession. Two quarters of falling output is one definition of a recession. Chinese manufacturing expanded in April but growth might be slowing after a rebound from the coronavirus pandemic, surveys showed. A monthly purchasing managers' index issued by the business magazine Caixin rose to 51.9 on a 100-point scale from March's 11-month low of 50.6 on a 100-point scale on which numbers above 50 show activity expanding.

A separate survey released by the Chinese statistics agency and an industry group declined by 0.8 points to 51.1 but still was above the 50-point mark showing activity growing.