Investing.com – European stocks were mixed on Monday, led down by declines in the financial sector, amid renewed fears over euro zone debt rating downgrades and after a flurry of downbeat U.S. data.
During European afternoon trade, the EURO STOXX 50 was up 0.02%; France’s CAC 40 shed 0.04%, while Germany's DAX added 0.03%.
Earlier in the day, Spanish newspaper Expansion reported that Moody's Investor Services is to reduce Spain's triple-A credit rating later this week. Moody's is the last of the major credit agencies to still have a top-grade rating for Spain.
Also Tuesday, Irish media reported that ratings agency Standard & Poor's may make further cuts to its rating for Anglo Irish Bank if the lender needs more than a EUR35 billion recapitalization from the Irish government. S&P had already cut its rating of the lender by three notches.
Following the news, stocks in the financial sector posted sharp declines, with Deutsche Bank tumbling 2.55%, French lender BNP Paribas falling 1.66% and Italian banker Unicredito shedding 1.16%.
On the corporate front, shares in French tire-maker Michelin extended early losses, plunging 10.42%, after the company said it would sell EUR 1.2 billion of new shares to strengthen its credit rating and finance an increase in capital expenditure.
In London, the FTSE 100 erased early losses to rise 0.15%, as commodity sector stocks led gains. Shares in miners Xstrata surged 2.25%, Rio Tinto gained 1.30%, while stocks in BHP Billiton were up 0.92%.
Meanwhile, shares in Thomas Cook Group plunged 5.67%, after Europe’s second-biggest tour operator said higher costs in the U.K. would reduce operating profit by approximately GBP 10 million in the second quarter.
Across the Atlantic, U.S. markets were mixed: the Dow Jones Industrial Average was up 0.26%; the S&P 500 index gained 0.17%, while the Nasdaq Composite index fell 0.11%.
Earlier in the day, the Conference Board said its index of U.S. consumer sentiment fell more-than-expected in September, and separate data showed that while U.S. house prices fell less-than-expected in July, the Richmond Manufacturing Index fell more-than-expected in September.
During European afternoon trade, the EURO STOXX 50 was up 0.02%; France’s CAC 40 shed 0.04%, while Germany's DAX added 0.03%.
Earlier in the day, Spanish newspaper Expansion reported that Moody's Investor Services is to reduce Spain's triple-A credit rating later this week. Moody's is the last of the major credit agencies to still have a top-grade rating for Spain.
Also Tuesday, Irish media reported that ratings agency Standard & Poor's may make further cuts to its rating for Anglo Irish Bank if the lender needs more than a EUR35 billion recapitalization from the Irish government. S&P had already cut its rating of the lender by three notches.
Following the news, stocks in the financial sector posted sharp declines, with Deutsche Bank tumbling 2.55%, French lender BNP Paribas falling 1.66% and Italian banker Unicredito shedding 1.16%.
On the corporate front, shares in French tire-maker Michelin extended early losses, plunging 10.42%, after the company said it would sell EUR 1.2 billion of new shares to strengthen its credit rating and finance an increase in capital expenditure.
In London, the FTSE 100 erased early losses to rise 0.15%, as commodity sector stocks led gains. Shares in miners Xstrata surged 2.25%, Rio Tinto gained 1.30%, while stocks in BHP Billiton were up 0.92%.
Meanwhile, shares in Thomas Cook Group plunged 5.67%, after Europe’s second-biggest tour operator said higher costs in the U.K. would reduce operating profit by approximately GBP 10 million in the second quarter.
Across the Atlantic, U.S. markets were mixed: the Dow Jones Industrial Average was up 0.26%; the S&P 500 index gained 0.17%, while the Nasdaq Composite index fell 0.11%.
Earlier in the day, the Conference Board said its index of U.S. consumer sentiment fell more-than-expected in September, and separate data showed that while U.S. house prices fell less-than-expected in July, the Richmond Manufacturing Index fell more-than-expected in September.