European Markets Dropped On Weak German Data

(RTTNews) - The European markets fell at the start of the new trading week, following the release of the weaker than expected German business confidence data. Investors also began the week in a cautious mood, ahead of central bank meetings in the U.S, Japan.

The prices of most commodities were also under pressure Monday, on concerns over risks in debt and commodities markets after the official Xinhua News Agency reported another scam in China's risk-laden shadow banking sector involving about 1 billion yuan of investor funds. However, gold stocks climbed on their safe haven appeal.

The Euro Stoxx 50 index of eurozone bluechip stocks decreased 0.75 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, lost 0.55 percent.

The DAX of Germany dropped 0.76 percent and the CAC 40 of France fell 0.52 percent. The FTSE 100 of the U.K. declined 0.78 percent and the SMI of Switzerland finished lower by 0.36 percent.

In Frankfurt, Deutsche Bank dropped 4.32 percent and Commerzbank surrendered 2.11 percent.

E.ON declined 2.75 percent and peer RWE weakened by 2.31 percent.

ThyssenKrupp decreased 3.71 percent and Salzgitter lost 1.98 percent.

In Paris, EDF sank 11.07 percent after delaying a final investment decision on its contentious Hinkley Point nuclear project until September.

Societe General declined 2.55 percent and BNP Paribas fell 2.40 percent. Credit Agricole also finished down by 2.27 percent.

Technip dropped 2.71 percent and Total closed lower by 0.47 percent.

In London, fashion retailer Ted Baker jumped 6.42 percent and Imperial Brands, formerly Imperial Tobacco, gained 3.07 percent on brokerage upgrades.

Ashtead Group finished higher by 2.70 percent, after Bank of America Merrill Lynch upgraded its rating on the stock to "Buy" from "Underperform."

Mining stocks were under pressure due to falling commodity prices. Anglo American dropped 7.33 percent and BHP Billiton tumbled 5.80 percent. Glencore fell 4.20 percent and Rio Tinto weakened by 4.16 percent.

Drug maker Novartis rose 0.27 percent on a report the Swiss drug maker plans to sell 13.5 billion Swiss francs stake in its rival Roche.

Consumer electronics giant Philips Electronics fell 4.12 percent in Amsterdam after saying it is considering an initial public offering of shares for its lighting division.

German business confidence weakened unexpectedly in April as firms were less satisfied with their current situation, survey results from the Munich-based Ifo Institute showed Monday. The Ifo Business Climate indicator dropped to 106.6 in April, while economists expected the gauge to rise to 107 from March's score of 106.7.

British industrial order books improved marginally in April, the Industrial Trends Survey from the Confederation of British Industry showed Monday. The order book balance rose unexpectedly to -11 percent in April from -14 percent. It was forecast to fall to -17 percent.

New home sales in the U.S. unexpectedly decreased in the month of March, according to a report released by the Commerce Department on Monday. The report said new home sales fell 1.5 percent to an annual rate of 511,000 in March from a revised rate of 519,000 in February.

The decrease surprised economists, who had expected new home sales to climb to a rate of 522,000 from the 512,000 originally reported for the previous month.