European Markets Finished Choppy Session In Negative Territory

(RTTNews) - The European markets got off to a weak start Monday, before climbing into positive territory. However, the markets then began to pare their gains and slipped back into the red, where they remainder for the rest of the session. Weak commodity prices contributed to the struggles of the European markets Monday. Energy and mining stocks were under pressure throughout the session. After being higher earlier in the session, most bank stocks also finished in the red. The upcoming Easter holiday may also be keeping some investors away from their desks.

The stimulus measures announced by the European Central Bank this month are largely aimed at boosting lending to households and businesses to support the euro area recovery and the bank does not lack tools to bring inflation back to its target of near 2 percent, ECB Executive Board Member Benoit Coeure said Monday.

In a speech in Paris, Coeure said, "The measures we announced on 10 March 2016 form a very substantial package which gives priority to loans for households and businesses, and thus supports the recovery."

"They underline our determination to fulfill the mandate entrusted to us by the people of Europe: to bring inflation back to nearly 2 percent, and they show that we have no shortage of tools."

The European Central Bank still has policy tools at its disposal to boost euro area inflation and growth after the latest set of stimulus measures announced earlier this month, ECB Governing Council member and Bank of Finland Governor Erkki Liikanen said Monday.

"Taking into account the current inflation outlook, our policy rates are expected to remain at present or lower levels for an extended period of time, and well past the horizon of the asset purchases," Liikanen said.

"If the outlook or financing conditions deteriorate, the ECB still has capacity to boost inflation and growth."

German economic growth is set to slow in the second quarter on the back of a stagnation in industrial orders and weaker business expectations, while the pace of expansion in the first three months of the year will likely match or even slightly exceed that seen in the second half of 2015, the Bundesbank said Monday.

"The Bank's economists expect growth in the first quarter of 2016 to be at least as strong as, or even to slightly exceed, the solid pace of growth of the second half of 2015," the bank said, citing its March Monthly Report.

The Euro Stoxx 50 index of eurozone bluechip stocks decreased 0.36 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, lost 0.19 percent.

The DAX of Germany dropped 0.02 percent and the CAC 40 of France fell 0.78 percent. The FTSE 100 of the U.K. declined 0.08 percent, but the SMI of Switzerland finished higher by 0.46 percent.

In Frankfurt, BASF rose 0.69 percent and Bayer jumped 3.26 percent on reports that Monsanto is exploring possible deals with both companies to consolidate its position in the industry.

RWE dropped 3.50 percent and peer E.ON declined 3.34 percent.

Commerzbank weakened by 1.03 percent and Deutsche Bank fell 0.94 percent.

In Paris, insurer AXA advanced 0.53 percent. Chairman and Chief Executive Henri de Castries is leaving earlier than expected after 27 years at the group and nearly 17 years at the helm.

Total surrendered 3.64 percent and Technip decreased 0.94 percent.

Societe Generale declined 1.16 percent and Credit Agricole lost 0.83 percent. BNP Paribas finished lower by 0.93 percent.

In London, J. Sainsbury climbed 1.21 percent as the supermarket chain confirmed a £1.4 billion ($2 billion) offer for Argos-owner Home Retail Group.

Mining stocks were under pressure due to weakness in metal prices. Antofagasta dropped 3.65 percent and Randgold Resources fell 1.15 percent. Glencore decreased 0.56 percent and Anglo American weakened by 1.06 percent. BHP Billiton declined 1.35 percent and Fresnillo lost 0.76 percent.

Telecom Italia gained 3.07 percent in Milan, after confirming that talks are underway with CEO Marco Patuano over the terms of his departure.

Eurozone's current account surplus decreased for a second straight month in January, data from the European Central Bank showed Monday. The seasonally-and-working-day adjusted current account surplus dropped to EUR 25.4 billion from EUR 28.6 billion in December. A year ago, the surplus was EUR 30.1 billion.

UK manufacturing output declined the most in six-and-a-half years, but producers expect volume growth next month, survey results from the Confederation of British Industry showed Monday. The balance of manufacturing volume of the CBI's monthly Industrial Trends Survey declined to -15 in the three months to March. The score was the lowest level since September 2009, when it was -19.

The average asking price for a house in the United Kingdom increased for the third straight month in March, the latest survey from Rightmove revealed on Monday. House prices in England and Wales climbed 1.3 percent month-over-month in March. This follows a 2.9 percent hike in the previous month.

After reaching their highest annual rate in six months in January, existing home sales in the U.S. pulled back by much more than expected in the month of February, the National Association of Realtors revealed in a report on Monday.

NAR said existing home sales tumbled 7.1 percent to an annual rate of 5.08 million in February from 5.47 million in January. Economists had expected sales to show a more modest decrease to a rate of 5.31 million.