By Carla Mozee, MarketWatch
LONDON (MarketWatch) -- European stocks fell Monday, with the
pan-European benchmark slipping from its first weekly advance in
nearly a month as investors considered mixed regional economic
readings.
The Stoxx Europe 600 index fell 0.5% to 326.39, relinquishing a
portion of last week's gain of 1.8%, the first weekly advance in
nearly a month.
The composite purchasing managers' index for the euro zone came
in at 53.2 for March, down slightly from the previous month's
reading of 53.3 but still showing an expansion for the
ninth-straight month. Later Monday, manufacturing PMI data for the
U.S. will be released.
Weakness in the markets followed data overnight from HSBC that
its preliminary China manufacturing Purchasing Managers' Index fell
to an eight-month low, missing a consensus forecast and showing
further contraction in the sector. Asian stocks finished higher as
investors appeared to anticipate that Beijing will introduce a
series of policy measures to stabilize growth.
But in Europe, it "seems the markets are reacting more to the
negativity of numbers rather than the potential cash injection,"
said James Hughes, chief market analyst at Alpari Ltd. in London,
in a note early Monday.
In country-specific moves, Germany's DAX 30 index fell 0.8% to
9,271.93, with losses accelerating after a preliminary report from
market-research firm Markit that private-sector activity in Germany
unexpectedly slowed in March. Shares of mail-delivery company
Deutsche Post AG , insurer Allianz SE and exchange operator
Deutsche Boerse AG were the only three of the DAX's 30 components
to see gains.
Deutsche Lufthansa AG shares notched the sharpest declines in
Frankfurt, down 2.4% after pilots at the airline on Friday voted to
strike as part of a rift with the carrier over pay.
France's CAC 40 index gave up 0.8% to 4,299.04, although
economic data brightened, with Markit saying France's
private-sector output in March expanded to a 31-month high.
The U.K.'s FTSE 100 index fell 0.3% to 6,532.16, as Vodafone
Group PLC pulled back by 1.1%. However, gainers included Lloyds
Banking Group , up 1.4% after its shares were upgraded to buy from
hold at Investec. There's "reasonable value" for the low-risk stock
after a 10% decline over 10 weeks, said Investec.
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