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European stocks decline on German, French PMIs; Dax down 0.89%

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Investing.com -

Investing.com - European stocks declined on Monday, weighed by the release of disappointing manufacturing and service sector data from Germany and France.

During European morning trade, the DJ Euro Stoxx 50 tumbled 0.90%, France's CAC 40 slid 0.69%, while Germany's DAX retreated 0.89%.

Market research group Markit said that its preliminary German manufacturing purchasing managers' index rose to 52.4 in June, from a reading of 52.3 the previous month, disappointing expectations for a rise to 52.5.

The preliminary German services purchasing managers' index fell to 54.8 this month, from a reading of 56.0 in May, compared to expectations for a decline to 55.7.

Markit also said that its preliminary French manufacturing PMI fell to an eight-month low of 47.8 this month from a reading of 49.6 in May. Analysts had expected the index to dip to 49.5 in June.

Meanwhile, the preliminary services PMI weakened to 48.2 this month from 49.1 in May and worse than expectations for a reading of 49.4.

European Central Bank President Mario Draghi said over the weekend that interest rates would stay low over a longer period and that large-scale asset purchases are still part of the central bank's toolkit.

Financial stocks were broadly lower, as French lenders Societe Generale (PARIS:SOGN) and BNP Paribas (PARIS:BNPP) retreated 0.70% and 0.74%, while Germany's Deutsche Bank (XETRA:DBKGn) slid 0.48%. Bloomberg reported earlier that BNP Paribas is nearing an agreement to plead guilty and pay $8 billion to $9 billion to settle allegations it violated U.S. sanctions.

Among peripheral lenders, Italy's Unicredit (MILAN:CRDI) and Intesa Sanpaolo (MILAN:ISP) declined 0.79% and 1.56% respectively, while Spanish banks Banco Santander (MADRID:SAN) and BBVA (MADRID:BBVA) shed 0.34% and 0.48%.

On the upside, Alstom (PARIS:ALSO) jumped 0.95% General Electric (NYSE:GE) signed the $17 billion purchase of the French company's energy assets, marking its biggest acquisition ever, after the resolution of the French government's last condition for the deal.

In London, FTSE 100 retreated 0.46%, as U.K. lenders tracked their European counterparts broadly lower.

Shares in Barclays (LONDON:BARC) slid 0.32% and HSBC Holdings (LONDON:HSBA) lost 0.62%, while Lloyds Banking (LONDON:LLOY) and the Royal Bank of Scotland (LONDON:RBS) tumbled 0.66% and 0.95% respectively.

Meanwhile, mining stocks were broadly higher as Glencore Xstrata (LONDON:GLEN) rose 0.27% and Antofagasta (LONDON:ANTO) jumped 1.04%, while Bhp Billiton (LONDON:BLT) rallied 1.09% and Rio Tinto (LONDON:RIO) led gains on the index with shares up 2%.

In the U.S., equity markets pointed to a mixed open. The Dow 30futures pointed to a 0.05% dip, S&P 500futures signaled a 0.01% uptick, while the Nasdaq 100futures indicated a 0.11% fall.

Later in the day, the euro zone was to release data on manufacturing and service sector activity, while the U.S. was to release preliminary data on manufacturing activity and private sector data on existing home sales.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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