European bourses tracked moderately lower midday Monday as traders weighed a soft retail sales report from Beijing, slipping national bonds, and geopolitical stresses in Eastern Europe. Bank stocks edged up, while retail and food issues lagged. Investors also eyed Wall Street futures signaling green but lower closes overnight on Asian exchanges after Beijing reported November retail sales rose a modest 3% on year, down from the 4.8% on-year gain logged in October.
The Eurozone flash composite purchasing managers index (PMI), a combination of services and manufacturing sectors, registered at 49.5 in December, up from 48.3 in November, but still striking below the 50-market that separates growth from contraction, reported S&P Global. Yields on 10-year national bonds topped 3% after a credit-rating agency lowered its rating on the nation’s debt to Aa3 from Aa2, citing stalemated efforts to address the nation’s national-budget deficit.
The pan-continental Stoxx Europe 600 Index was off 0.3% mid-session. The Stoxx Europe 600 Technology Index was down 0.7%, but the Stoxx 600 Banks Index gained 0.2%. The Stoxx Europe 600 Oil and Gas Index was off 0.6%, and the Stoxx 600 Europe Food and Beverage Index declined 1%. The REITE, a European REIT index, fell 0.6%, but the Stoxx Europe 600 Retail Index declined 0.9%.
On the national market indexes, Germany's DAX was down 0.4%, and the FTSE 100 in London was down 0.4%. The CAC 40 in Paris was off 0.9%, and Spain's IBEX 35 lost 0.1%. Yields on benchmark 10-year German bonds were lower, near 2.24%. Front-month North Sea Brent crude-oil futures were 1% to $73.76 per barrel.
The Euro Stoxx 50 volatility index was up 4.7% to 14.40, but still indicating below-average volatility for European stock markets in the next 30 days, a positive signal. A reading above 20 indicates choppier markets ahead, while below 20 suggests calmer exchanges..