European Markets Dip After China Data

Markets Dow Jones Newswires

European stock markets dropped on Monday, with banks leading the charge south, as investors digested a mixed bag of data from China.

Continue Reading Below

The Stoxx Europe 600 index slipped 0.1% to 335.49, after closing in positive territory for a second straight week on Friday. U.S. stock markets were closed for Martin Luther King Jr. Day.

Shares of Deutsche Bank AG (DB) lost 4.4% after the bank on Sunday reported an unexpected pretax loss for the fourth quarter, as it took charges for valuation adjustments and litigation costs.

Shares of Peugeot SA slid 6.6% after the car maker's board approved the broad outline of a possible 3 billion euro ($4.1 billion) capital increase.

On a more upbeat note, shares of Anheuser-Busch InBev SA (AHBIY) picked up 1% after private-equity firm KKR & Co. (KKR.AE) and Affinity Equity Partners reached a deal to sell Oriental Brewery back to the brewer.

More broadly, investors weighed a raft of data out of China. Gross domestic product for the fourth quarter showed economy growth slowed slightly, while industrial-production growth in December eased a bit more than expected.

Continue Reading Below

"The slowdown is somewhat expected as China transitions itself from an economy driven by consumer spending and services rather than one reliant on debt-fueled investments and exports," said Ishaq Siddiqi, market strategist at ETX Capital, in a note.

"Markets are expecting GDP for the country to come in between 7.2% to 7.4% for 2014, but are hopeful that economic reforms put in place by the current leadership will bear fruit by 2015 and beyond," he added.

Among country-specific indexes in Europe, Germany's DAX 30 index fell 0.3% to 9,715.07, weighed by Deutsche Bank. France's CAC 40 index was flat around 4,327.30, while the U.K.'s FTSE 100 index was marginally higher at 6,831.38.