Inflation data for the eurozone region showed that consumer prices rose by 3% year-on-year for August. This was more than expected and above the ECB target of 2% putting pressure on the central bank to address inflation concerns.

Asian markets were higher despoite manufacturing PMI data for China showing a fall to 49.2 in August, the first contraction in fifteen months.

Focus for the markets over the next few days will be the US nonfarm payrolls data for August, which may give investors further clues regarding the Federal Reserve’s decision about the timing of tapering.

UK manufacturing PMI data is due this morning.

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