Subdued euro zone manufacturing data weighs on European shares

google_ad_client = "ca-pub-9086149371682476"; google_ad_slot = "8294999143"; google_ad_width = 500; google_ad_height = 500; LONDON, Jan 2 (Reuters): A modest New Year rally in European stocks quickly fizzled out on Friday after disappointing euro zone manufacturing data.

The pan-European FTSEurofirst 300 index slipped 0.1 per cent to 1,367.52 points by midsession and early gains on benchmark indexes in France, Germany and Britain all ebbed away.

Euro zone manufacturing ended 2014 on a subdued note as output, new orders and employment all recorded sluggish growth, a survey showed on Friday, adding to pressure on the European Central Bank (ECB) to boost the economy.

The downturn also deepened in France, the euro zone's second-biggest economy, while data also showed a weaker-than-expected reading for the British manufacturing sector.

Germany's DAX fell 0.7 per cent, France's CAC was down by 0.1 per cent while Britain's FTSE 100 also retreated 0.1 per cent.

ECB President Mario Draghi reiterated in a German newspaper interview that the bank was ready to take new economic stimulus measures, such as buying government bonds in a process known as "quantitative easing" (QE), to boost the region's economy.

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