Europe close: Stocks finish lower on weak manufacturing data
European stocks were still lower by end-of-play on Monday following the release of weak German manufacturing data, while investors eyed trade negotiations between the US and China.
The pan-European Stoxx 600 ended the day 0.8% lower at 389.80, while Germany's DAX was down 1.01% at 12,342.33 and the French CAC 40 declined 1.05% to 5.630.76.
London's FTSE 100 fared little better, losing 0.26% to 7,326.08, while the FTSE 250 was off 0.62% at 20,043.79.
Data out early in the day showed Germany's manufacturing sector contracting in September, with the IHS/Markit manufacturing purchasing managers' index falling to its lowest level in more than a decade, coming in at 41.1.
That compared to 43.5 the month before, and was below expectations for a reading of 44.0, while the services PMI fell to 52.5, missing expectations for 54.3.
Eurozone manufacturing PMI also undershot forecasts, printing at 45.6 in September from 47.0 the month before, and compared to expectations of 47.3.
“We've become accustomed to seeing weak manufacturing PMIs, not just in the euro area but across the globe as slower growth and the trade war takes their toll,” said Craig Erlam, market analyst at Oanda.
“The numbers this morning though were particularly poor and the services sector may now be getting caught up in it all, which doesn't bode well.”
Meanwhile, Sino-US trade relations remained in focus after officials from a Chinese delegation cancelled a planned visit to US farms in Montana and Nebraska, and left the United States earlier than anticipated after trade discussions last week.
AxiTrader analyst Stephen Innes said the officials were thought to have been ordered to cancel the visit by Beijing following US President Trump's announcement that he would not be interested in a partial deal.
Among individual stocks, holiday firms and airlines TUI, EasyJet, Ryanair and Air France KLM were all higher following the collapse of industry rival Thomas Cook, which went bust in the early hours of Monday after the failure of last-minute talks.
TUI shares were ahead 7.12%, EasyJet added 4.63%, Ryanair was 0.85% firmer, and Air France KLM rose 1.52%.
Commerzbank remained a standout faller, losing 7.46% after the firm unveiled plans on Friday to cut 4,300 jobs and close 200 branches as part of a new strategy that would see the company invest heavily in technology.
Other major banks were also lower, with Bank of Ireland down 4.95%, AIB off 3.88%, CYBG losing 2.97%, and BBVA in the red by 2.63% in London.