Europe close: Stocks fall on Eurozone confidence, Hong Kong protests

European stocks declined as a report showed Eurozone economic confidence fell and as Hong Kong protests upset the market.

An index of executive and consumer sentiment in the euro-area dropped to 99.9 in September from 100.6 in August, the European Commission in Brussels said on Monday.

“We now expect third quarter gross domestic product to grow 0.1%, slightly better than the second quarter’s zero growth, but still slower than the average 0.2% quarter-on-quarter growth during the Eurozone ‘recovery’,” said BNP Paribas. “Our forecast is currently in line with survey indicators, but risks remain.”

Elsewhere in the euro-area, German inflation, on a harmonised basis, held at 0.8% year-on-year in September, better than the 0.7% expected by analysts.

Meanwhile, making waves was protests in Hong Kong against changes to the political system that allow direct elections but only from a pool of candidates approved by Beijing. London-listed banks including HSBC and Standard Chartered closed some of their branches in Hong, sending their shares lower.

In the US, personal spending increased 0.5% in August following a 0.1% drop the previous month, beating the forecast for a 0.4% gain.

US pending home sales fell 4.1% in August following a 2.7% increase in July, missing projections for a 2% increase.
The data comes as the Federal Reserve determines whether the economy is healthy enough to sustain an interest rate hike.

Commerzbank, Air France

Commerzbank dropped on reports the German lender is working to resolve an investigation into Iran sanctions violations. The group also reportedly faces a US inquiry into whether it broke anti-money-laundering laws.

Air France gained as the airline said it would look to resume a full flight schedule after a majority of pilots ended strikes.

RWE was lower as Germany’s largest power producer said a plan to sell its RWE Dea oil and gas unit to Russia’s LetterOne investment group has been delayed.

The euro rose 0.13% to $1.2701.

Brent crude futures increased 0.23% to $97.24 per barrel, according to the ICE.