European Markets Finished Mostly Lower On Manufacturing Data

(RTTNews) - The majority of the European markets ended the first session of the new trading week in negative territory. Investors were confronted with some mixed global manufacturing data on Monday. Investors were also hesitant to take positions ahead of some major economic data that the U.S. will release later this week. U.S. GDP is expected to be released on Thursday and the U.S. jobs report for November will come out on Friday.

China's manufacturing activity maintained relatively steady growth momentum in November, two separate surveys of company purchasing managers have revealed.

Final results of the survey by Markit Economics and HSBC showed that the purchasing managers' index, a gauge of the factory sector performance, posted 50.8 in November, little changed from October reading of 50.9. However, this was higher than the November's flash reading of 50.4

The official survey released by the China Federation of Logistics and Purchasing (CFLP) and the National Bureau of Statistics revealed Sunday that activity expanded at a steady pace in November supported by increased production.

The official purchasing managers index recorded a reading of 51.4 in November, unchanged from October's 18-month high. Production and export orders rose at a faster pace, while new order growth moderated.

Moody's Investors Service has upgraded Greece's government bonds ratings by two notches, citing the progress made in the fiscal consolidation program and the improving economic outlook.

The country's government bond rating was lifted to Caa3 from C with a 'stable' outlook, Moody's said in a statement on Friday. The short term ratings remained at 'Not Prime' (NP). The agency, concurrently, raised Greece's local and foreign-currency ceiling to B3 from Caa2.

Moody's said that the rating action reflected the significant fiscal consolidation that has taken place under Greece's structural adjustment program despite low growth and political uncertainty.

The rating agency said it expects the government to achieve and possibly outperform its target of a primary balance in 2013, and record a surplus in 2014 in accordance with the adjustment program.

Lending by U.K. banks participating in Funding for Lending Scheme increased sharply during the quarter ended September, the Bank of England said Monday. Net lending by 42 banks totaled GBP 5.8 billion in the third quarter, up from GBP 1.6 billion in the second quarter. This was the biggest quarterly lending flow since the scheme was launched.

The Euro Stoxx 50 index of eurozone bluechip stocks declined by 0.23 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, lost 0.19 percent.

The DAX of Germany dipped by 0.04 percent and the CAC 40 of France fell by 0.22 percent. The FTSE 100 of the U.K. dropped by 0.83 percent and the SMI of Switzerland decreased by 0.08 percent.

In Frankfurt, ThyssenKrupp sank by 8.46 percent. The steel giant announced the sale of its rolling and coating plant in Calvert, Alabama to a consortium of ArcelorMittal SA and Nippon Steel & Sumitomo Metal Corp. for $1.55 billion. Further, Nomura reduced its rating on the stock.

Lanxess fell by 2.60 percent, after Deutsche Bank downgraded the stock to ''Hold'' from ''Buy.''

Deutsche Telekom dipped by 0.56 percent, after Nomura downgraded the stock to ''Neutral'' from ''Buy.''

Symrise rose by 0.31 percent, after a broker upgrade.

In London, retailer Tesco declined by 2.03 percent. HSBC downgraded its rating on the stock to "Underweight" from "Neutral." J Sainsbury fell by 2.60 percent and WM Morrison Supermarkets lost 2.26 percent.

Debenhams decreased by 3.93 percent, after Barclays downgraded its rating on the retailer to "Underweight" from "Equal weight."

Fresnillo dropped by 8.76 percent and Randgold fell by 4.35 percent, amid falling gold prices.

Lloyds Banking climbed by 1.52 percent. The lender issued a notice that on November 29, it redeemed all of its outstanding $423.815 million, 7.875 percent non-cumulative preference shares and the euro 173.35 million, 7.875 percent non-cumulative preference shares at their par value.

Shire fell by 2.27 percent, after Sandoz announced that it will bring a generic version of Adderall XR to market.

Swiss banking giant UBS announced a cash tender offer related to some bonds for a maximum aggregate principal amount of 1.75 billion euros. The stock finished lower by 0.12 percent.

Eurozone manufacturing activity continued to recover in November, supported by expansion in output and new orders, a survey by Markit Economics revealed Monday. The headline purchasing managers' index, a gauge of the manufacturing performance, rose to 51.6 in November from 51.3 in October. The latest reading was slightly up from the flash estimate of 51.5.

Germany's overall manufacturing sector expanded for the fifth straight month in November, and the rate of growth exceeded initial estimate, final data from Markit Economics showed Monday. The Markit/BME Purchasing Managers' Index came in at 52.7 in November, up from 51.7 in October. The reading signaled the strongest improvement since June 2011 and was above the initial estimate of 52.5.

Orders for the German plant and machinery declined by 10 percent in October from the previous year, largely due to weak demand from outside the euro area, the industry group VDMA said Monday.

Operating conditions across French manufacturing sector deteriorated further in November, survey results published by Markit Economics revealed Monday. The headline seasonally adjusted purchasing managers' index fell to 48.4 in November from 49.1 in October.

The U.K. manufacturing sector expanded at its fastest pace since February 2011 as production and new orders logged the biggest increases in almost two decades. The Markit/Chartered Institute of Purchasing & Supply Purchasing Managers' Index rose to 58.4 in November from an upwardly revised reading of 56.5 in October. The score was also above the consensus of 56.4 and signaled expansion for eight months running.

An index measuring the asking prices for houses in the United Kingdom showed a 0.5 percent increase in November compared to the previous month, property tracking site Hometrack said on Monday, holding steady for the third straight month.

The U.S. manufacturing sector unexpectedly expanded in November for the sixth consecutive month, the Institute of Supply Management reported Monday. The ISM's purchasing managers' index registered 57.3 percent, an increase of 0.9 percentage point from October's reading of 56.4 percent. It was the highest reading since November 2011. Economists forecast a fall to 55.0.

U.S. construction spending rebounded in October thanks to higher spending on public projects, the Commerce Department reported Monday. Construction spending for October was at a seasonally adjusted annual rate of $908.4 billion, 0.8 percent above the September estimate of $901.2 billion. Markets were anticipating a 0.5 percent increase.