Arizona Tribune - Europe stocks rise on slight eurozone growth

The eurozone economy eked out 0.1 percent growth in the second quarter, official data showed, but this was weaker than the prior estimate of 0.3 percent.

The European Union's Eurostat data agency also revised its first-quarter figures, saying the economy grew 0.1 percent and did not stagnate as previously thought, but commentators say the outlook is still weak.

"Sentiment remained cagey," cautioned City Index analyst Fawad Razaqzada in reaction to modest stock market gains in Europe.

"There appears to be two major sources of concerns for investors right now: Weak growth in the eurozone and China, and interest rates remaining higher for longer in the United States."

Asian equities sank sharply following a forecast-busting reading on the US services sector that revived speculation the US Federal Reserve could resume rate hikes.

- 'Lacklustre' -

"Lacklustre trading is set to be the order of the day given there is so little to pin more optimistic hopes on right now," warned Hargreaves Lansdown analyst Susannah Streeter.

Sentiment was also hammered by data showing China's exports and imports sank again in August, sparking slowdown fears and sending the onshore yuan to a 16-year dollar low.

The onshore Chinese unit, whose trade is regulated by Beijing, touched 7.3284 -- a level last seen in December 2007.

The disappointing yet expected trade figures add to growing pressure on authorities to introduce fresh stimulus for the world's number two economy even as the data showed some sign of improvement.

Wall Street and European stocks had already retreated on Wednesday, weighed down also by worries about higher oil prices and the possibility of rising borrowing costs.

Wednesday's release of Institute of Supply Management figures dealt a blow to hopes the Fed had reached the end of its tightening cycle following a string of recent positive data.

The reading put further upward pressure on the dollar, with the yen particularly in focus as it sat at its weakest point for 10 months -- when Japanese officials intervened in money markets last year to prop it up.

After a rosy couple of weeks, the gloom that characterised markets for much of the summer has returned as traders contemplate the possibility of more tightening and borrowing costs kept elevated for an extended period to tame inflation.

- Key figures around 1100 GMT -

London - FTSE 100: UP 0.4 percent at 7,451.97 points

Frankfurt - DAX: UP 0.2 percent at 15,765.46

Paris - CAC 40: UP 0.4 percent at 7,219.34

EURO STOXX 50: FLAT at 4,240.35

Tokyo - Nikkei 225: DOWN 0.8 percent at 32,991.08 (close)

Hong Kong - Hang Seng Index: DOWN 1.3 percent at 18,202.07 (close)

Shanghai - Composite: DOWN 1.1 percent at 3,122.35 (close)

New York - Dow: DOWN 0.6 percent at 34,443.19 (close)

Euro/dollar: DOWN at $1.0715 from $1.0727 on Wednesday

Dollar/yen: DOWN at 147.44 yen from 147.66 yen

Pound/dollar: DOWN at $1.2484 from $1.2507

Euro/pound: UP at 85.82 pence from 85.76 pence

West Texas Intermediate: DOWN 0.6 percent at $87.04 per barrel

Brent North Sea crude: DOWN 0.5 percent at $90.19 per barrel

Ch.P.Lewis--AT