Investing.com – European stocks were trading mostly lower on Monday, though London’s stock market was on the rise as a weak pound supported the commodity-heavy index.
Nearing midday in Europe, the benchmark Euro Stoxx 50 lost 0.38%, France’s CAC 40 fell 0.57%, and Germany’s DAX 30 traded down 0.35%.
Comments by British Prime Minister Theresa May on Sunday in her first interview of 2017 were seen as an indication that the U.K. won’t try to negotiate continued full access to the European single market when it leaves the European Union, known as Brexit, as she focuses on securing the Britain’s right to decide its own immigration policies and laws.
The pound reacted by turning sharply lower against the dollar on Monday, with GBP/USD shedding 1.20% to trade at 1.2136, the lowest level since October 28.
On the economic front, investor sentiment in the euro zone improved in January to its highest level since August 2015 on expectations that Republican Donald Trump's election to the U.S. presidency will give a boost to an economic pick-up in the region.
Separately, the region’s unemployment rate held steady at 9.8% in November, its lowest level since July 2009.
Furthermore, German exports jumped more than expected in November, posting their steepest monthly rise in four-and-half years and pushing up overall industrial production which drove growth in Europe's biggest economy in the final quarter.
On the company front, Volkswagen (DE:VOWG_p) jumped more than 3% after the German automaker reported a 2.8% rise in brand sales across 2016 with China driving most of the demand.
Also in the auto sector, Fiat Chrysler (MI:FCHA) gained nearly 2% after it revealed a $1 billion U.S. investment plan to create 2,000 jobs in Michigan and Ohio in a bid to show its commitment to American manufacturing.
Shares in Bovis Homes (LON:BVS) jumped close to 2% this following news the current British homebuilder’s chief executive has stepped down after the company issued a profit warning.
On the downside, shares in Fresenius Medical (DE:FMEG) tumbled nearly 6% after the German dialysis provider received a subpoena from U.S. federal prosecutors investigating its ties to the charity American Kidney Fund, which helps patients pay for kidney dialysis.
William Hill Plc (LON:WMH) slumped more than 3% after the British bookmaker reported a fall in operating profit due to unexpected horse racing and football results.
Meanwhile, oil prices have come under pressure, after Iran and Iraq both reported large export numbers. According to Reuters, Iran has sold over 13 million barrels of crude held at sea over the last three months, undermining attempts by OPEC members to curb supplies.
Additionally, exports from Iraq's Basra region have hit a record high, although the Iraqi oil ministry insisted that it will not affect its commitment to the OPEC production deal.
Indications of increased drilling activity in the U.S. also put downward pressure on crude prices. According to oilfield services provider Baker Hughes, the number of rigs drilling for oil in the U.S. last week increased by 4 to 529, the tenth straight weekly rise and a level not seen in more than a year.
Energy stocks were trading lower, as French oil and gas major Total SA (PA:TOTF) fell 0.9% , Italy’s ENI (MI:ENI) lost 1.08%, while Norwegian rival Statoil (OL:STL) dropped 0.56%.
Financial stocks also registered losses, as French lenders BNP Paribas (PA:BNPP) traded down 1.17% and Societe Generale (PA:SOGN) slipped 0.15%, while Germany’s Deutsche Bank (DE:DBKGn) and Commerzbank (DE:CBKG) lost 0.25% and 0.69%, respectively.
Among peripheral lenders, Italy’s Intesa Sanpaolo (MI:ISP) was off 0.63% and Unicredit (MI:CRDI) lost 1.49%, while Spanish banks BBVA (MC:BBVA) gave up 0.32% and Banco Santander (MC:SAN) traded down 0.62%.
In London, the commodity-heavy FTSE 100 broke the general trend in Europe, gaining 0.22%, and was on track for an eighth consecutive closing high thanks to the weak pound.
A cheap pound drives up the value of multinational firms listed on the index, as it means their overseas earnings are worth more when converted into sterling.
Shares in Glencore (LON:GLEN) soared 2.43%, Anglo American (LON:AAL) jumped 2.03%, while BHP Billiton (LON:BLT) and Rio Tinto (LON:RIO) traded up 1.44% and 0.74%, respectively.
Energy stocks were mixed, as BP (LON:BP) gained 0.27% and rival Royal Dutch Shell (LON:RDSa) lost 0.22%.
Financial stocks were also mixed as shares in HSBC Holdings (LON:HSBA) gained 0.60% and the Royal Bank of Scotland (LON:RBS) slumped 1.94%, while Barclays (LON:BARC) edged forward 0.15% but Lloyds Banking (LON:LLOY) fell 0.61%.
In the U.S., equity markets pointed to a flat open. The Dow Jones Industrial Average futures slipped 0.04%, S&P 500 futures dropped 0.06%, while the Nasdaq 100 futures inched up 0.06%.