(MENAFN– ecpulse)
European equities market opened mixed to lower on Monday, after a gauge of euro zone’s services industries added to signs of slowing growth in the single currency block, while markets were also weighed down by weak cues from Asia.
European stocks retreated Monday after first tier data released by Markit Economics earlier in the session showed euro-area services sector Purchasing Managers’ Index (PMI) dropped to 51.0 last month from 51.2 in November.
Data released last week showed that the manufacturing sector recorded its highest level in 31 months. A composite of manufacturing and services PMIs remained unrevised at 52.1 in December, marking the second-highest reading since mid-2011.
While in Germany, the services sector fell back to 53.5 from a prior of 55.7. Frances services PMI fell to 47.8 from 48.0 in November.
- Stoxx 600 slipped 0.30 percent 0.79 points to 326.67
- Stoxx 50 declined 0.18 percent to 3,069.02
In UK, Chancellor George Osborne will say in a speech in Birmingham that years of spending cuts lie ahead, despite Prime Minister David Cameron’s promises to protect pensioners` income if his Conservative party wins the 2015 election.
Looking ahead, Europe’s two giant banks, the Bank of England (BoE) and the European Central Bank (ECB) will hold their first policy meetings of 2014 later this week on Thursday, with markets expecting both to maintain status quo on monetary policy.
-The British FTSE 100 lost 0.17 % or 11.31 points to 6,719.36
-The French CAC 40 fell 0.22% or 9.24 points to 4,238.41
-Frankfurt’s DAX 30 dropped 0.27% or 25.40 points to 9,409.75
Asian shares dropped to a three-week low Monday after growth in China`s services sector slowed sharply in December, adding to concerns about the pace of recovery in the world`s second-largest economy.
China`s Services PMI fell to 51.2 in December from 52.3 in November, marking its weakest growth since August 2011. The data came after a report released on Friday showed service-sector growth slowing to a four-month low.
Across the Atlantic, traders are waiting for factory orders, service sector activity data due today and the release of all-important jobs report, and fourth quarter growth data on Friday. While, minutes of the December FOMC meeting will be released on Wednesday, which will offer clues on how quickly the Fed will taper its massive bond-buying program.
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