European Shares Reverse Early Gains On Weak PMI Data

(RTTNews) - European stocks gave up early gains to turn lower on Monday as weak regional data offset investor optimism over U.S. lawmakers reaching a deal to avert government shutdown.

Euro zone manufacturing activity remained mired in a deep and broad-based downturn last month, with the HCOB's final euro zone manufacturing Purchasing Managers' Index (PMI), compiled by S&P Global, falling to 43.4 from August's 43.5.

Another survey showed the downturn in the U.K. manufacturing sector continued in September albeit at a slower pace.

The seasonally adjusted S&P Global/CIPS manufacturing purchasing managers' index rose slightly to 44.3 from August's 39-month low of 43.0.

Meanwhile, unemployment rate in the euro area has seen a drop from 6.5 percent to 6.4 percent in August - matching expectations.

The pan European STOXX 600 was down 0.1 percent at 449.68 after rising 0.4 percent on Friday.

The German DAX was marginally lower, France's CAC 40 was little changed and the U.K.'s FTSE 100 slipped 0.2 percent.

Spanish bank Banco Bilbao Vizcaya Argentaria, S.A. gained 1 percent after it received clearance from the European Central Bank (ECB) for its share buyback program of up to 1 billion euros.

British defense giant BAE Systems advanced 1.5 percent after winning a £4bn submarine contract.

Water company United Utilities rose over 2 percent after reporting trading in line with its expectations for the year ending March 2024 and retaining outlook.

Pennon shares rallied 3 percent. The water and wastewater group said it has traded in line with expectations in its first half ended 30 September.

Melrose rose about 1 percent after staring a GBP500 million share buyback program.

French media group Vivendi jumped 2.3 percent after Barclays upgraded the stock rating to 'overweight'.

China-exposed LVMH and Hermes International were seeing modest gains after official data showed China's factory activity in September expanded for the first time since April.

Germany's Deutsche Bank edged down half a percent on reports that the country's financial regulator has appointed a special monitor to oversee the lender's handling of consumer service problems at its Postbank unit.

Insurer Allianz SE was marginally lower after extending the mandate of Oliver Bate as Chairman and Chief Executive Officer.