The European markets got off to a weak start to the new trading week, due to the weaker than expected Chinese industrial production data. Some of the early weakness was also attributed to profit taking, following the recent upward trend. The markets pared their losses in the afternoon, following the better than expected U.S. retail sales report. Eurozone finance ministers are meeting in Brussels later today to discuss review programs for Spain and Cyprus.
China's industrial production rose less than expected, while retail sales growth was in line with expectations, offering very little conviction in the strength of the recovery underway in the world's second largest economy. The growth in the country's fixed asset investment was weaker than expected.
Industrial production increased 9.3 percent year-on-year in April, faster than the 8.9 percent rise in the previous month. However, the output growth was below forecast of 9.4 percent growth. In the first four months of the year, production was up 9.4 percent compared to the same period last year.
Retail sales increased 12.8 percent annually in April, as expected. This compares with the 12.6 percent rise recorded in March. In the January-April period, sales were up 12.5 percent compared to the same period of 2012.
The Bank of France on Monday predicted that the French economy is set to grow in the second quarter, repeating a modest expansion seen for the first three months of the year.
The bank forecast 0.1 percent growth as its first estimate for the second quarter. For the first quarter, the bank had predicted 0.1 percent growth. The statistical office INSEE is set to release the first quarter GDP figures on May 15.
The British economy will continue to expand throughout this year and growth is expected to pick up in 2014, the Confederation of British Industry said in a report on Monday.
In its latest economic forecast, the CBI projects the gross domestic product to grow 1 percent in 2013, unchanged from its previous forecast. In 2014, growth is seen at 2 percent.
However, it warned that despite the recent economic data being more promising, clear challenges remained both at home and abroad.
The Euro Stoxx 50 index of eurozone bluechip stocks declined by 0.34 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, lost 0.38 percent.
The DAX of Germany climbed by 0.01 percent and the FTSE 100 of the U.K. rose 0.10 percent. The CAC 40 of France decreased by 0.22 percent and the SMI of Switzerland fell by 0.37 percent.
In Frankfurt, Commerzbank sank by 4.95 percent. Handelsblatt reported that the lender is planning to place new shares this week. Deutsche Bank also fell by 0.28 percent.
Deutsche Lufthansa dropped by 2.27 percent, after reporting a decrease in April passenger traffic.
QSC surged by 5.08 percent, after its first-quarter profit more than doubled.
In Paris, Societe Generale decreased by 0.73 percent. Credit Agricole and BNP Paribas fell 1.77 percent and 1.15 percent.
Danone finished up by 0.51 percent, after announcing the acquisition of organic baby food firm Happy Family.
In London, Standard Chartered declined by 1.93 percent, as Carson Block is betting against the bank's debt.
HSBC finished lower by 0.70 percent, after it was downgraded to "Reduce" from "Buy" by Investec Securities.
Lloyds Banking fell by 1.44 percent, after announcing the retirement of its chairman Winfried Bischoff.
Glencore Xstrata rose by 0.41 percent. The company reported higher copper output for the first quarter. Merrill Lynch also upgraded the stock to its ''Europe 1 List.''
Lonmin climbed by 2.58 percent, after the platinum producer reported a surge in its profit before tax for the half year.
Retail sales in the U.S. unexpectedly showed a modest increase in the month of April, according to a report released by the Commerce Department on Monday. The Commerce Department said retail sales inched up by 0.1 percent in April following a revised 0.5 percent decrease in March.
The modest increase in sales surprised economists, who had expected sales to dip by 0.3 percent compared to the 0.4 percent drop originally reported for the previous month.
With a drop in retail inventories offsetting an increase in wholesale inventories, the Commerce Department released a report on Monday showing that U.S. business inventories unexpectedly came in unchanged in the month of March.
The report said business inventories were virtually unchanged for the second consecutive month, while economists had expected inventories to increase by 0.3 percent.
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Market Analysis
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.