The German market is moderately lower in afternoon trading Monday, following weak economic data, amid reports of differences between Germany and France over plans to monitor Europe's crisis-hit banks.
Growth worries from China also garnered investor attention after Song Guoqing, an academic adviser to the People's Bank of China, said he saw no signs of a rebound in the third quarter and domestic investment is unlikely to expand dramatically in the short term.
A report appeared in Der Spiegel on Sunday showed that Eurozone countries are planning to increase the size of the region's permanent bailout fund dramatically.
The governments are preparing to quadruple the capacity of the European Stability Mechanism to 2 trillion euros from the current 500 billion euros, the magazine reported citing a Finance Ministry spokesperson. "It is currently being discussed in Brussels," the spokesperson was quoted as saying.
German business sentiment declined for the fifth consecutive month in September, reports said citing survey results from Ifo Institute. The business climate index fell to 101.4 from 102.3 in August, while it was forecast to remain unchanged at 102.3.
The Euro Stoxx 50 index of eurozone bluechip stocks is declining 1.01 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, is dropping 0.42 percent.
The DAX index is currently losing 0.62 percent.
Commerzbank is declining 4.5 percent after Nomura cut the stock to "Reduce" from "Neutral." Deutsche Bank is losing 1.4 percent.
Steel maker ThyssenKrupp is falling 3 percent. Tire maker Continental is losing 2.1 percent.
UBS cut E.ON to "Neutral" from "Buy." The stock is dropping 0.9 percent.
Rhoen-Klinikum is losing 1.3 percent even though Commerzbank raised its rating on the hospital operator.
Software AG is losing around 2 percent after a downgrade by Societe Generale.
Merck is gaining 1.2 percent and Bayer is adding around 1 percent.
Elsewhere in Europe, the French CAC 40 is declining 1.14 percent and the UK's FTSE 100 is falling 0.57 percent. Switzerland's SMI is falling 0.37 percent.
Across Asia/Pacific, Australia's All Ordinaries and Japan's Nikkei 225 slid 0.5 percent each while Hong Kong's Hang Seng dropped 0.2 percent. China's Shanghai Composite Index bucked the trend and advanced 0.32 percent.
In the U.S., futures point to a lower open on Wall Street. In the previous session, lingering uncertainty about the outlook for the markets helped to keep trading activity subdued. While the Nasdaq inched up 0.1 percent, the Dow edged down 0.1 percent and the S&P 500 slipped 0.01 percent.
In the commodity space, crude for November delivery is losing $1.39 to $91.50 per barrel and December gold is dropping $18.8 to $1759.5 a troy ounce.
by RTT Staff Writer
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