European stocks broadly lower after PMIs; Dax down 0.06%


Shutterstock photo - European stocks were broadly lower on Monday, after euro zone manufacturing data indicated that the economic recovery in the region remains weak, while investors eyed U.S. data later in the day.

During European afternoon trade, the EURO STOXX 50 slid 0.42%, France's CAC 40 declined 0.36%, while Germany's DAX 30 inched down 0.06%.

Revised data showed that the bloc's manufacturing purchasing managers' index rose to a two year high of 51.6 last month from October's 51.3, slightly higher than a preliminary estimate of 51.5.

Meanwhile, Spain's manufacturing sector contracted for the first time since July last month, while the French manufacturing sector contracted for the 21st straight month.

The Spanish PMI fell to 48.6 from 50.9 in October, led lower by weaker orders and output.

The French index fell to 48.4 from 49.1 in October, the lowest level since June.

Financial stocks turned broadly lower, as French lenders BNP Paribas and Societe Generale slid 0.33% and 0.46%, although Germany's Deutsche Bank advanced 0.86%.

Among peripheral lenders, Spanish banks Banco Santander and BBVA declined 0.82% and 0.85% respectively, while Italy's Unicredit and Intesa Sanpaolo shed 0.33% and 0.53%.

Elsewhere, ThyssenKrupp plummeted 8.56% after the German steelmaker agreed to sell its U.S. plant to ArcelorMittal and Nippon Steel & Sumitomo Metal Corp. for USD1.55 billion. Shares in ArcelorMittal rallied 2.13% following the news.

L'Oreal added to gains, up 1.26%, as cosmetics maker said it will repurchase as much as EUR500 million of shares.

In London, commodity-heavy FTSE 100 retreated 0.71%, weighed by losses in mining stocks, although data showed that activity in the U.K. manufacturing sector expanded at the fastest rate in 33 months in November.

Shares in Glencore Xsrata dropped 0.40% and Vedanta Resources tumbled 1.24%, while rival company Fresnillo plunged 2.16%.

Oil and gas giant was also on the downside, shedding 0.87%, after the Financial Times reported that the oil giant expects a surge in compensation payments for the 2010 Deepwater Horizon disaster, after a near-two month slowdown.

Meanwhile, financial stocks turned mostly higher, as the Royal Bank of Scotland rose 0.31%, while Barclays and Lloyds Banking both gained 0.40%. HSBC Holdings underperformed however, down 0.50%.

In the U.S., equity markets pointed to a steady open. The Dow Jones Industrial Average futures pointed to a 0.01% dip, S&P 500 futures signaled a 0.05% slip, while the Nasdaq 100 futures indicated a 0.11% rise.

Also Monday, a report showed that China's final HSBC PMI inched up to 50.8 in November, up from a preliminary reading 50.4 and above expectations for a reading of 50.5.

The data was published one day after a government report showed that China's manufacturing PMI held steady at an 18-month high of 51.4 in November, compared to forecasts for a decline to 51.1.

Later in the day, Federal Reserve Chairman Ben Bernanke was to speak at an event in Washington, while the Institute of Supply Management is to release its manufacturing PMI. offers an extensive set of professional tools for the financial markets.
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This article appears in: Investing Forex and Currencies
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