(MENAFN– ecpulse)
Stocks plunged in the early part of the European session on Monday, after a report showed that industrial orders in Germany fell well below forecast in May.
Germany`s industrial output fell 1.8% on the month in May, its biggest drop in more than two years, comparing with the consensus forecast for the output to be unchanged.
The lackluster report from Germany has casted a shadow on its role as the euro area`s largest economy.
The drop in Germany`s industrial output was surprise and sent the Stoxx 600 as low as 0.25% to 346.83.
The disappointing data added to signs of a weaker second quarter in the Germany economy, after it enjoyed a quarterly growth of 0.8% in the first three months of the year, its fastest growth rate in three years.
The numbers also fueled specualtion that the European Central Bank (ECB) may have to loosen monetary policy further in the near term to counter low infaltion and boost subdued growth.
- Germany`s DAX 30 was down 0.10% to 9,998.84
- France`s CAC 40 was down 0.34% at 4.453.88
- Britian`s FTSE 100 was down 0.24% to 6,849.63
Among equity movers, PostNL NV gained the most on the pan-European benchmark, rising 15.80% to 4.098 euros after the group raised its 2014 profit outlook.
Banco Espirito SAnto SA rose 6.12% to 0.80 euros after the bank`s biggest shareholder proposed naming Vitor Bento as chief exectuive officer and Joao Moreira Rato as chief financial officer, according to a statement.
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