Investing.com - European stocks turned mostly lower on Monday,
as downbeat economic reports from Germany fuelled concerns over the
health of the euro zone's biggest economy and as concerns over
tensions in Ukraine persisted.
During European early afternoon trade, the DJ Euro Stoxx 50
inched up 0.05%, France's CAC 40 declined 0.32%, while Germany's
DAX slipped 0.18%.
European equities weakened after data on Monday confirmed that
Germany's economy contracted by 0.2% in the second quarter, in line
with forecasts and unchanged from a preliminary estimate.
Separate reports showed that Germany's manufacturing sector
expanded at the slowest pace in 11 months in July, while factory
activity in France contracted at the quickest pace in 13
Slowing growth in the euro area could add to pressure on the
European Central Bank to implement fresh measures to shore up the
faltering recovery in the region, ahead of its upcoming monetary
policy meeting on Thursday.
Meanwhile, investors continued to monitor the situation in
Ukraine ahead of negotiations due to take place later in the day
between Ukrainian and Russian officials and pro-Russian separatists
after talks last week resulted in no major breakthrough.
Financial stocks remained broadly lower, as French lenders BNP
Paribas (PARIS:BNPP) and Societe Generale (PARIS:SOGN) tumbled
1.07% and 2%, while Germany's Deutsche Bank (XETRA:DBKGn) retreated
Among peripheral lenders, Italy's Unicredit (MILAN:CRDI) and
Intesa Sanpaolo (MILAN:ISP) lost 1.44% and 1.90% respectively,
while Spanish banks Banco Santander (MADRID:SAN) and BBVA
(MADRID:BBVA) declined 0.65% and 0.77%.
Elsewhere, Iliad (PARIS:ILD) saw shares plunge 4.10% amid
reports the French provider of telecommunication services is
currently in talks with private-equity firms to team up and make an
improved offer for Deutsche Telekom (XETRA:DTEGn)'s T-Mobile US
In London, FTSE 100 dipped 0.06%, still weighed by Tesco
(LONDON:TSCO), whose shares plummeted 1.80% after Harris
Associates, one of the supermarket group's biggest shareholders,
said it had more than halved its stake in the business, saying it
was operating an "incoherent strategy" with "unclear management
Financial stocks also remained broadly lower, as Barclays
(LONDON:BARC) dropped 0.57% and Lloyds Banking (LONDON:LLOY)
retreated 0.83%, while HSBC Holdings (LONDON:HSBA) and the Royal
Bank of Scotland Group (LONDON:RBS) tumbled 0.91% and 1.27%
In the mining sector, stocks were mixed. Shares in Rio Tinto
(LONDON:RIO) climbed 0.53% and Fresnillo (LONDON:FRES) advanced
0.68%, while Glencore Xstrata (LONDON:GLEN) slipped 0.23% and Bhp
Billiton (LONDON:BLT) slumped 0.39%.
In the U.S., markets were to remain closed for the Labor Day
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