(RTTNews.com) - The European markets ended the first session of the new trading week in the red. Investor sentiment took a hit after China canceled trade talks with the U.S. as tariffs on billions of dollars worth of goods take effect.
Investors are also looking forward to the Federal Reserve's policy decision on Wednesday. The central bank is widely expected to raise interest rates by another quarter point.
European Central Bank President Mario Draghi said on Monday that the underlying inflation in the euro area is set to rise in coming months, and that there are signs of labor shortages in some countries in the single-currency union.
The pan-European Stoxx Europe 600 index weakened by 0.56 percent. The Euro Stoxx 50 index of eurozone bluechip stocks decreased 0.60 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, lost 0.62 percent.
The DAX of Germany dropped 0.64 percent and the CAC of France fell 0.33 percent. The FTSE 100 of the U.K. declined 0.42 percent and the SMI of Switzerland finished lower by 0.55 percent.
In Frankfurt, Volkswagen dropped 1.31 percent. Porsche will no longer offer diesel versions of its cars, becoming the first German auto maker to drop the engines in the wake of the emissions-cheating scandal.
BMW and Daimler also fell around 2.5 percent each after carmakers and the German government representatives failed to reach a compromise on Sunday over how to tackle the problem of older diesel cars.
In Paris, grocery retailer Carrefour Group fell 0.81 percent after it denied having ever solicited Casino for merger talks. Casino declined 0.06 percent.
In London, Sky Plc jumped 8.61 percent after the media giant urged its shareholders to immediately accept a superior cash offer of 17.28 pounds by Comcast Corp.
Randgold Resources leaped 6.03 percent after it agreed merger terms with Canada'sBarrick Gold.
Travel operator Thomas Cook Group tumbled 26.95 percent. The company slashed its profit outlook "following unprecedented months of hot weather." German peer TUI fell 2.75 percent.
Novartis slid 0.10 percent in Zurich. The pharmaceutical company announced that it plans to file ex-US for a new indication in ROP to bring transformative treatment to premature infants facing severe vision loss.
Roche Group shed 0.91 percent. The drug major announced the global availability of blood-based genomic profiling test, FoundationOne Liquid.
Germany's business confidence weakened in September as companies scaled back their expectations amid deteriorating current situation, survey data from the Mannheim-based Ifo institute showed Monday. The business sentiment index fell less-than-expected to 103.7 in September from 103.9 in August. Economists had forecast the score to drop to 103.2 from the originally estimated 103.8 in August.
UK manufacturing orders deteriorated in September as export order books faded a little, the Industrial Trends Survey from the Confederation of British Industry showed Monday. The total order book balance fell to -1 percent in three months to September, in contrast to the forecast of +4 percent. The export order book balance stood at +5 percent.
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