Investing.com - European stock markets declined on Monday, as growing concerns over China’s economic outlook and lingering worries over turmoil in emerging markets dampened the mood for risk-sensitive assets.
During European afternoon trade, the EURO STOXX 50 dropped 0.85%, France’s CAC 40 fell 0.55%, while Germany’s DAX 30 slumped 0.7%. Elsewhere, Spain’s IBEX 35 shed 0.8% Italy’s FTSE MIB index lost 0.95%, while in London, the FTSE 100 inched down 0.3%.
Data released earlier showed that China''s official non-manufacturing PMI slipped to its lowest level since December 2008 in January, falling to 53.4 from 54.6 in December.
The deterioration in the services sector adds to declining manufacturing PMIs. Data released over the weekend showed that China’s official manufacturing PMI fell to a six-month low of 50.5 in January from 51.0 in December.
Meanwhile, market players continued to monitor liquidity conditions in emerging markets, such as Turkey and South Africa.
Emerging markets economies have been hard hit in recent sessions by worries over the impact of cuts in Federal Reserve stimulus and concerns over a slowdown in China.
Financial stocks were broadly lower, as French lenders BNP Paribas, Societe Generale and Credit Agricole fell 1.6%, 1.7% and 2.1% respectively, while Germany’s Deutsche Bank slumped 1.5%.
Among peripheral lenders, Spanish banks Banco Santander and BBVA declined 0.8% and 1.4% respectively, while Italy''s Banco Popolare and Unicredit dropped 3.3% and 2%.
In London, Lloyds Banking Group shares tumbled 3.5% after the lender said it set aside GBP1.8 billion in the fourth quarter to cover the cost of compensating customers for mis-sold payment protection insurance.
On the upside, shares of Ryanair Holdings rallied 6.1% after the budget airliner confirmed its full-year guidance.
Across the Atlantic, U.S. equity markets pointed to a lower open as investors looked ahead to key U.S. economic data later in the day for further indications on the future course of monetary policy.
The Dow Jones Industrial Average futures pointed to a loss of 0.25% at the open, S&P 500 futures signaled a decline of 0.25%, while the Nasdaq 100 futures indicated a drop of 0.3%.
The U.S. Institute of Supply Management is to produce data on manufacturing activity for January later in the session, a leading economic indicator.
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