European Markets Reversed & Finished Mostly Lower

(RTTNews) - The European markets were up in early trade Monday, despite the weak performance of the Chinese market. The mood among investors soured after the weaker than expected Eurozone investor sentiment report. Continued weakness in energy and resource stocks also weighed on the markets. The majority of the European markets ended the session in negative territory.

Chinese shares plunged further on economic concerns after data released on Saturday showed producer prices fell for a 46th month. China's consumer price inflation remained muted at about half the government's target for 2015 in December and the producer price index plunged deeper into deflation territory, stirring concerns over a slowing economy. The benchmark Shanghai Composite index slumped 5.33 percent to a 4-year low.

China's consumer price inflation increased marginally in December on rise in food prices but it still remained well below the government's target. At the same time, producer prices continued its deep downward trend, giving space for monetary policy adjustment.

Inflation edged up to 1.6 percent as expected from 1.5 percent in November, the National Bureau of Statistics revealed over the weekend. A similar rate was last seen in September 2015, and was the fastest rate since August 2015.

Another report from the NBS showed that producer prices decreased for the 46th consecutive month in December. The producer price index dropped 5.9 percent year-on-year in December, the same rate of decrease as seen in previous four months. Economists had forecast a 5.8 percent fall for December.

The Euro Stoxx 50 index of eurozone bluechip stocks decreased 0.20 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, lost 0.21 percent.

The DAX of Germany dropped 0.25 percent and the CAC 40 of France fell 0.49 percent. The FTSE of the U.K. declined 0.69 percent and the SMI of Switzerland finished lower by 0.53 percent.

In Frankfurt, Continental fell 0.74 percent. The auto parts supplier reported increased sales for 2015, but added that growth would slow down in 2016.

Volkswagen climbed 1.69 percent. Volkswagen chief executive Matthias Mueller has apologized for cheating diesel car emissions tests on his first official US visit since the scandal broke in September. Mueller also announced that the company has a new catalytic converter in development that could potentially fix the problem.

Qiagen sank 11.13 percent. The genetic testing specialist said fourth-quarter adjusted net sales likely grew less than estimated.

RWE climbed 2.91 percent and E.ON added 1.54 percent.

In Paris, Groupe Eurotunnel fell 2.73 percent. Exane BNP Paribas downgraded its rating on the stock to "Neutral" from "Outperform."

In London, Taylor Wimpey gained 0.62 percent. The company said that in 2015, total home completions increased 7 percent to 13,341 homes.

Shire dropped 8.23 percent, after it agreed to acquire Baxalta for $18.00 per share.

Electrolux fell 2.05 percent in Stockholm. The company announced that Keith McLoughlin has notified the Board that he wishes to retire from the company. The Board has appointed Jonas Samuelson as new President and CEO, effective February 1, 2016.

Statoil sank 2.82 percent in Oslo, after Goldman Sachs added the stock to its "Conviction Sell" list.

Eurozone investor sentiment weakened more than forecast in January as uncertainties over Chinese stock market and weaker global growth weighed on expectations. The investor sentiment index fell to 9.6 in January from 15.7 in December, results of a survey by Sentix revealed Monday. It was forecast to drop to 11.8.

Germany's manufacturing turnover declined in November after recovering a month ago, Destatis reported Monday. Manufacturing turnover dropped 2.3 percent in November from a year ago, after rising by revised 1.8 percent in October.