European stock markets experienced a downward trend in Monday trading, with the Stoxx Europe 600 index off 0.14%. Germany's DAX index fell 0.45%, the FTSE 100 in London decreased by 0.46%, and France's CAC 40 saw a decline of 0.71%. Contrarily, the Swiss Market Index managed a slight increase of 0.06%.
The HCOB Flash Eurozone Composite PMI Output Index, compiled by S&P Global, rose to 49.5 in December from 48.3 in November. However, this figure indicates ongoing economic contraction for the second consecutive month as it remains below the neutral mark of 50.0. Both Germany and France reported continued contraction in December, whereas the broader Eurozone experienced its quickest expansion rate in six months.
In labor market developments, the euro area's job vacancy rate fell to 2.5% in Q3, down from 2.6% in Q2 and 3.0% year-over-year, as per data from Eurostat. Meanwhile, the EU's overall job vacancy rate was also down to 2.3% in Q3 from 2.4% in the previous quarter. Turning to the UK, the seasonally adjusted S&P Global Flash UK PMI Composite Output Index remained stable at 50.5 in December, consistent with November's results, suggesting a modest expansion in private sector output.
Nevertheless, this reading remains below the H1 average index of 53.0. In corporate news, HSBC is currently facing a lawsuit from the Australian securities regulator, which alleges that the banking giant failed to implement adequate control measures to protect its customers from falling victim to scams costing millions.
HSBC has not yet provided a comment on this matter. Shares of Entain dropped more than 6% in London after the Australian Transaction Reports and Analysis Centre announced civil penalty proceedings against the company's Australian branch. The regulator claims that Entain exhibited "serious and systemic" breaches of anti-money laundering and counter-terrorism financing laws.
Entain's CEO, Gavin Isaacs, acknowledged the severity of the allegations, stating, "We note the allegations made, which we take extremely seriously. We are committed to keeping financial crime out of gambling and continue to play our part in supporting a well-regulated and compliant sector." He further indicated that the ramifications of the civil penalty could be significant.
Additionally, Novo Nordisk, alongside biotech partner Catalent, has confirmed the completion of all regulatory closing conditions for their forthcoming transaction. The Danish pharmaceutical firm also announced plans to invest 8.5 billion Danish kroner (approximately $1.20 billion) to establish a new production facility in Odense, Denmark, with shares of Novo Nordisk climbing over 3% in Copenhagen on the news.
In further pharmaceutical news, British company GSK revealed that the European Medicines Agency has recommended an expansion of the approval for its experimental drug Jemperli, in conjunction with chemotherapy, aimed at treating adults with primary advanced or recurrent endometrial cancer eligible for systemic therapy..