Europe close: Gains in stocks capped by geopolitical jitters
- M&A in focus
- EU weighing new sanctions against Russia
- Eurozone manufacturing hit by geopolitical jitters
FTSE 100: 0.08%
DAX: 0.09%
CAC 40: -0.03%
FTSE MIB: -0.51%
IBEX 35: 0.16%
Stoxx 600: 0.25%
For the most part European stocks managed to end the session slightly higher despite economic data which revealed that geopolitical uncertainties were weighing on the Eurozone's manufacturing sector.
Activity in the Eurozone's factories dropped to a 13-month low in August, according to revised data from survey compiler Markit, as new orders from both inside and outside the single currency area slowed.
The headline gauge for the firm's purchasing managers' index (PMI) fell to 50.7, a 13-month low, versus an initial estimate of 50.8 and the previous month's reading of 51.8.
Particularly noteworthy was a significant downward revision to the PMI for Germany, to 51.4 from a preliminary estimate of 52 (consensus: 52).
US markets were closed on Monday in observance of the Labor Day Holiday.
Acting as a backdrop, tensions in Eastern Europe were ignited over the weekend by calls from Russian President Vladimir Putin for talks on "statehood" for south-east Ukraine. The comments come as Western leaders prepare to impose further sanctions on Moscow following further fighting near the border of Ukraine.
M&A in focus
French telecommunications group Iliad is speaking to various private-equity firms about a possible combined bid for Deutsche Telekom AG's T-Mobile US unit, Bloomberg reported on Sunday.
Norwegian Cruise Line Holdings, the world's third largest cruise operator, is in advanced talks to acquire peer Prestige Cruises International for around $3bn, according to Reuters, who cited people familiar with the matter.
Tesco came under further selling pressure following negative news-flow over the weekend, including an article in the FT's Lex column which argued that the company's shares are not yet a bargain.
From a sector standpoint the best performance was to be seen in the following industrial groups within the DJ Stoxx 600: healthcare (1.06%), media (0.81%) and travel and leisure (0.77%).
Oil futures continue to slip
The euro edged higher by 0.04% to $1.3120.
Brent crude futures slipped 0.477% to $102.7 per barrel, according to the ICE.
AB