European stock markets experienced a positive close on Monday, with significant gains observed across various indices. The FTSE in London showed an increase of 0.36%, while Germany's DAX rose by 0.58%. The Stoxx Europe 600 index also registered a gain of 0.36%, reflecting a broader recovery in European equities.
The Swiss Market Index climbed by 0.26%, and France's CAC experienced a modest uptick of 0.1%. However, despite the upward movement in stock prices, the eurozone's business activity reported a notable decline in September. New orders and overall business activity fell sharply, indicating a deepening downturn in the manufacturing sector.
According to flash data released by S&P Global and Hamburg Commercial Bank, the HCOB Flash Eurozone Composite PMI Output Index fell to an eight-month low of 48.9, down from 51. Specifically in France, output in the private sector reverted to contraction in September after a brief spike in business activity related to the Olympics in August.
Germany also faced significant setbacks, with the decline in business activity recorded as the fastest since February, as highlighted by the latest data. In the realm of corporate developments, Commerzbank emerged as a prominent decliner on the DAX after Italian banking group UniCredit announced an increase in its stake in the German lender.
UniCredit has raised its holding from an initial 9% to 21%, pending necessary approvals. Furthermore, the Italian bank plans to acquire up to 29.9% of Commerzbank, signaling a greater interest in the German financial market. On a more positive note, Siemens Energy's stock value rose on the German exchange after the company announced plans to carve out its electric vehicle charging business.
This strategic move is aimed at fostering growth and will see Siemens eMobility combined with the newly acquired DC fast-charging firm Heliox. In environmental news, French oil and gas giant TotalEnergies (TTE) disclosed on Monday that it has secured an additional order for sustainable aviation fuel.
This order, amounting to up to 1.5 million tons, falls under an existing supply agreement with Air France-KLM. The new fuel order is set to be delivered over a period extending to 2035 over the next ten years. In significant corporate transactions, HSBC Holdings (HSBC) announced the decision to sell its German private banking division to BNP Paribas.
This deal is projected to conclude in the second half of 2025, although specific financial details were not disclosed. HSBC anticipates that this transaction will result in a gain on sale, further underscoring its strategic adjustments within the financial services landscape..