European Markets Pulled Back On China Concerns & Falling Crude Prices

(RTTNews) - The European markets ended the first session of the new trading week in the red. Following the rally at the end of the prior trading week, stocks gave up early gains Monday due to falling crude oil prices and renewed concerns over China. Disappointing Chinese manufacturing data spooked investors and caused oil prices to turn lower.

Chinese manufacturers signaled deterioration in operating conditions at the start of 2016 but the pace of contraction slowed slightly from December, the results of a private survey showed Monday.

However, official data released by the government showed that the manufacturing sector underwent a faster contraction than seen at the end of 2015.

The Caixin Purchasing Managers' Index rose to 48.4 in January from 48.2 in December, Markit said. Nonetheless, activity has been contracting for the eleventh successive month.

At the same time, the official manufacturing PMI fell to 49.4 in January from 49.7 in December. According to the National Bureau of Statistics report, the sector contracted for the sixth straight month.

The official non-manufacturing PMI dropped to 53.5 from 54.4 in December but stayed in positive territory.

The European Central Bank will review and possibly reconsider its monetary policy stance when it meets in March, Executive Board member Benoit Coeure said Monday.

"But for the recovery to become structural - and thus to increase growth potential and reduce structural unemployment - monetary policy does not suffice," policymaker said at a conference in Budapest.

The Euro Stoxx 50 index of eurozone bluechip stocks decreased 0.79 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, lost 0.43 percent.

The DAX of Germany dropped 0.41 percent and the CAC 40 of France fell 0.56 percent. The FTSE of the U.K. declined 0.39 percent and the SMI of Switzerland finished lower by 0.11 percent.

In Frankfurt, Dialog Semiconductor rose 1.30 percent. The chipmaker is eyeing new acquisition targets to spur growth, its chief executive told German weekly Euro am Sonntag.

Lab equipment maker Sartorius climbed 6.86 percent after updating its medium-term forecast.

BMW dropped 1.64 percent and Daimler fell 0.65 percent. Volkswagen also finished lower by 0.94 percent.

In Paris, Total sank 2.25 percent, but Technip advanced 0.92 percent.

Vivendi decreased 5.34 percent and LafargeHolcim weakened by 2.73 percent.

In London, HSBC Holdings dropped 1.60 percent on a report it will impose a hiring and pay freeze globally in 2016 as part of its drive to cut as much as $5 billion in costs by the end of 2017.

Rolls-Royce Holdings finished unchanged despite winning a $2.7 billion order for Trent 1000 engines.

BT Group climbed 1.93 percent after the telecoms giant delivered a strong performance in the final quarter of 2015 and announced a new organizational structure.

Ryanair Holdings jumped 5.45 percent after strong third-quarter earnings.

Nokia sank 11.29 percent in Helsinki, after the firm said it had settled a lengthy patent dispute with South Korea's Samsung.

The euro area manufacturing sector growth slowed as estimated in January with rates of expansion in output, new orders and new export business all easing at the start of the year, final survey data from Markit showed Monday.

The final manufacturing Purchasing Managers' Index fell to 52.3 in January from 53.2 in December. The reading matched flash estimate.

British manufacturing growth quickened unexpectedly at the start of the year to the strongest level in three months, survey data from Markit Economics showed Monday. The Markit/Chartered Institute of Procurement & Supply Purchasing Managers' Index for manufacturing rose to 52.9 in January from 52.1 in December. Economists had expected the index to fall to 51.8.

U.K. mortgage approvals rose to a 4-month high in December, the Bank of England reported Monday. The number of mortgage approvals rose unexpectedly to 70,837 in December from 70,424 in November. This was the highest since August 2015. Economists had forecast approvals to fall to 69,600 in December.

U.S. manufacturing activity contracted for the fourth straight month in January, according to a report released by the Institute for Supply Management, although the index of activity in the sector did show a slight increase.

The ISM said its purchasing managers index inched up to 48.2 in January from a downwardly revised 48.0 in December, but a reading below 50 continues to indicate a contraction in manufacturing activity. Economists had expected the index to climb to a reading of 48.3 from the 48.2 originally reported for the previous month.

Personal income in the U.S. rose in line with economist estimates in the month of December, according to a report released by the Commerce Department on Monday, although the report also said personal spending came in virtually unchanged.

The report said personal income climbed by 0.3 percent in December, matching the increase seen in November as well as economist estimates.

Meanwhile, the Commerce Department said personal spending edged down by less than 0.1 percent in December after rising by 0.5 percent in the previous month. Spending had been expected to inch up by 0.1 percent.

With a jump in spending on public construction partly offset by a drop in spending on private construction, the Commerce Department released a report on Monday showing that U.S. construction spending rose much less than expected in December.

The Commerce Department said construction spending inched up 0.1 percent to an annual rate of $1.117 trillion in December from the revised November estimate of $1.116 trillion. Economists had expected spending to climb by 0.6 percent.