Europe midday: Markets drop on poor German manufacturing data
European stocks were lower at lunchtime on Monday following the release of weak German manufacturing data, while investors eyed trade negotiations between the US and China.
The Stoxx 600 was 0.9% lower at 389.54, Germany's Dax fell 1.1% to 12,327.84 and the French CAC 40 declined 0.9% to 5,637.52. Meanwhile, London's FTSE 100 was down 0.6% at 7,304.05.
Data out earlier showed that Germany's manufacturing sector contracted in September. The IHS Markit manufacturing purchasing managers' index fell to its lowest levels in more than a decade, coming in at 41.1 compared to 43.5 the month before and below expectations for a reading of 44.0. The services PMI fell to 52.5, meanwhile, missing expectations of 54.3.
Eurozone manufacturing PMI also undershot expectations, printing at 45.6 in September from 47.0 the month before, versus expectations of 47.3.
Craig Erlam, market analyst at Oanda, said: "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. 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 were in focus after officials from a Chinese trade delegation cancelled a planned visit to US farms in Montana and Nebraska.
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 were all higher following the collapse of industry rival Thomas Cook, which has gone bust after the failure of last-minute talks.
Commerzbank was among the Stoxx 600's top fallers after the German bank on Friday unveiled plans 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, AIB, CYBG, and Banco Bilbao Vizcaya Argentaria all in the red.