Europe close: Stocks start with slight gains

European stocks are continuing to trade slightly lower despite the release of stronger-than-expected readings on the economy, weighed down by a somewhat more cautious stance on stockmarkets from strategists at JP Morgan.

By the closing bell, the benchmark Stoxx 600 had turned around to rise by 0.13% or 0.53 points to 396.59, albeit alongside a dip of 0.07% or 10.07 points to 13,468.79 for the German Dax while the FTSE Mibtel was off by 0.05% or 11.28 points at 23,002.85.

In parallel, front mont Brent crude oil futures were ahead by 3.3% to $64.19 a barrel on the NYMEX while euro-dollar was 0.40% weaker to 1.1612.

Meanwhile, in Spain the Ibex 35 lost 0.40% to trade at 10,316.50.

Writing to clients on Monday, JP Morgan strategists said that markets would continue to head higher overall but that the time had come to 'lock-in' some profits in 'cyclicals'.

In particular, the strategists pointed out that cyclicals had run up well ahead relative to 'defensives' on the basis of what bond yields would imply.

On a more positive note, German factory orders surprised sharply to the uspide, jumping by 1.0% month-on-month in September (consensus: -1.1%), according to the Ministry of Finance, led by a 6.3% rise in orders from other euro area countries.

As well, an estimate for euro area-wide services sector growth for October was also revised higher, with IHS Markit´s activity index for the sector in that month marked up from an initial reading of 54.9 to 55.0.

However, some market observers took note of the sizeable 2.1 point drop in the Spanish services PMI to 54.6 on the back of the ongoing crisis in Catalonia.

Linked to the above, earlier on Monday economists at BBVA lowered their 2017 GDP forecast for Spain from 3.3% to 3.1% and for 2018 from 2.8% to 2.5%.

No major economic reports were scheduled for release in the States.

Hotels chain Accor was making headlines after Saudi Arabia launched an anti-corruption drive at the weekened that saw its third-largest shareholder, prince Alwaleed bin Talal arrested.

T-Mobile and Sprint Corp. were also in the spotlight at the start of the week after the two firms called off their merger.

Over in France, according to Reuters Airbus's sales chief John Leahy said he plans to remain at his post until a succesor is found with a decision expected during the next week or so.