Investing.com – European stocks traded broadly lower on Monday as concerns over growth in China and the announcement of a capital raise by Germany’s Deutsche Bank weighed on investor sentiment.
Nearing midday in Europe, the benchmark Euro Stoxx 50 fell 0.21%, France’s CAC 40 lost 0.35%, and Germany’s DAX 30 traded down 0.33%.
Chinese Premier Li Keqiang announced over the weekend that the Asian giant aimed to expand its economy by only 6.5% this year. The target for the world’s second largest economy in 2016 had been a larger 6.5% to 7%, with China achieving a 6.7% expansion last year.
Also putting a damper on risk appetite, Deutsche Bank (DE:DBKGn) announced that it would issue €8 billion ($8.48 billion) in new shares as part of its strategic revamp. Shares tanked more than 6%, leading the decliners on the Stoxx 600.
In M&A news, GM (NYSE:GM) announced that it would sell its Opel and Vauxhall brands to PSA Group (PA:PEUP), while Standard Life (LON:SL) and Aberdeen Asset Management (LON:ADN) confirmed merger talks.
On a slow day for data, retail sector activity in the euro zone contracted in February, according to a report released by Markit.
Additionally, the Sentix index of investor confidence rose to 20.7 in March, beating expectations for a rise to just 18.5.
Meanwhile, oil prices edged lower during European morning hours on Monday, starting the week off in negative territory amid concerns over rising production and swelling stockpiles in the U.S.
Data from oilfield services provider Baker Hughes released late Friday revealed that the number of active U.S. rigs drilling for oil rose by 7 in the prior week, the seventh weekly increase in a row. That brought the total count to 609, the most since October 2015.
Energy stocks were trading lower, as French oil and gas major Total SA (PA:TOTF) fell 0.91%, Italy’s ENI (MI:ENI) lost 0.65%, while Norwegian rival Statoil (OL:STL) traded down 0.40%.
Financial stocks were mostly lower, as French lenders BNP Paribas (PA:BNPP) retreated 0.59% and Societe Generale (PA:SOGN) traded down 0.72%, while Germany’s Deutsche Bank (DE:DBKGn) tumbled 6.24% though Commerzbank (DE:CBKG) advanced 0.10%.
Among peripheral lenders, Italy’s Intesa Sanpaolo (MI:ISP) fell 0.34% and Unicredit (MI:CRDI) lost 0.36%, while Spanish banks BBVA (MC:BBVA) gained 0.56% and Banco Santander (MC:SAN) advanced 0.21%.
In London, the commodity-heavy FTSE 100 fell 0.29%, pressured by mining stocks.
Shares in Glencore (LON:GLEN) fell 1.03%, Anglo American (LON:AAL) lost 1.18%, while BHP Billiton (LON:BLT) traded down 0.84% and Rio Tinto (LON:RIO) was off 1.11%.
Energy stocks traded lower, as BP (LON:BP) shed 0.67% and Royal Dutch Shell (LON:RDSa) fell 0.44%.
Financial stocks were in the red as shares of HSBC Holdings (LON:HSBA) slipped 0.26% and the Royal Bank of Scotland (LON:RBS) slumped 1.90%, while Barclays (LON:BARC) lost 1.43% and Lloyds Banking (LON:LLOY) traded down 1.49%.
In the U.S., futures pointed to a lower open. The Dow Jones Industrial Average futures dropped 0.21%, S&P 500 futures lost 0.31%, while the Nasdaq 100 futures fell 0.24%.