9th Sep 2013 11:58
PARIS (Alliance News) - The European markets are trading lower on Monday, as concerns about a US military strike in Syria dominated investors' minds after inflation in China came in line with expectations and the US jobs report showed fewer than expected jobs were added in August.
Consumer prices in China were up 2.6 percent on year in August, exactly in line with expectations, and was down slightly from 2.7 percent in July. Producer prices dropped 1.6 percent on year, but topped forecasts for a contraction of 1.7 percent.
Closer home, Eurozone's investor confidence increased in September to the second-highest level on record, and to a significantly larger extent than economists had forecast, as the region emerged from its long-drawn recession in the second quarter, a closely watched survey revealed.
Data from the survey conducted by think-tank Sentix showed that the headline investor confidence index for the Eurozone climbed to 6.5 in September from -4.9 in August.
The Euro Stoxx 50 index of eurozone bluechip stocks is losing 0.34 percent, while the Stoxx Europe 50 index, which includes some major UK companies, is falling 0.60 percent.
The German DAX is marginally lower, while the French CAC 40, the UK's FTSE 100 and Switzerland's SMI are declining around 0.5 percent.
In Frankfurt, RWE is falling 2.1 percent and E.ON is losing 1.7 percent. Merrill Lynch cut E.ON to ''Underperform'' from ''Neutral.''
Bayer is declining 1.6 percent. SAP and Linde are moderately lower.
Merrill Lynch raised Munich Re to ''Buy'' from ''Neutral.'' The stock is gaining close to 3 percent.
In Paris, Builder Bouygues is declining around 3 percent. Dairy giant Danone is losing 2.1 percent and drugmaker Sanofi is falling 2 percent.
Cosmetics major Loreal, department stores operator Kering and eye-care firm Essilor International are notably lower.
In London, BG Group is declining 4.6 percent after issuing a production warning.
Associated British Foods, which issued a trading update, is losing around 3 percent.
EpiStem Holdings said it still sees full-year revenues of 5.4 million pounds and a loss after tax of 1.2 million pounds. Further, the talks with BD were unsuccessful and hence the supply and distribution deal, which was originally signed in August 2012, was terminated. The stock plunged over 14 percent.
Swiss Re is gaining 1.6 percent in Zurich. The reinsurer expects prices for natural catastrophe covers to stabilize next year after a decline in 2013. The company sees the demand for natural catastrophe reinsurance doubling in high-growth markets and expects it to rise by around 50 percent in mature markets by 2020.
Across Asia/Pacific, markets ended higher and in the US, futures point to a higher open on Wall Street.
The major US averages ended the previous session near the unchanged line, turning in a mixed performance, after the Labor Department said non-farm payroll employment increased by 169,000 jobs in August compared to economist estimates for an increase of about 175,000 jobs.
While the Dow edged down 0.1 percent, the Nasdaq crept up less than 0.1 percent and the S&P 500 inched up less than 0.1 percent.
Among commodities, crude for September delivery is losing $0.58 at $109.95 per barrel while December gold is falling $0.8 to $1385.7 a troy ounce.
Copyright RTT News/dpa-AFX