PARIS (dpa-AFX) - The European markets are trading weak on Monday, after Eurozone economic growth slowed for a second month running in June, easing to the weakest since December. Investors largely shrugged off positive data from China, amid escalating worries about Iraq.
Survey data from Markit Economics showed the flash headline index covering output of both manufacturing and services in Eurozone fell to 52.8 from 53.5 in May. The score was above the neutral 50 mark, but below economists' forecast of 53.4.
Separate data showed that Germany's private sector expanded at the slowest pace in eight months in June. Flash survey data from Markit Economics revealed that despite softening to the weakest in eight months, the pace of growth remained above the long-run series average.
Flash data from Markit Economics showed that Chinese manufacturing sector expanded for the first time in six months in June, driven by domestic and foreign orders.
The Euro Stoxx 50 index of eurozone bluechip stocks is losing 0.32 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, is falling 0.19 percent.
The German DAX is declining 0.40 percent and the French CAC 40 is dropping 0.35 percent. The UK's FTSE 100 and Switzerland's SMI are falling 0.27 percent and 0.33 percent, respectively.
In Frankfurt, Commerzbank is losing 2.6 percent. Diversified chemicals maker K+S is dropping 2.4 percent.
Adidas and Continental are losing 1.7 percent and 1.5 percent, respectively.
Siemens is moderately lower after French speed-train maker Alstom's board decided to recommend the improved $17 billion offer made by General Electric Co. for Alstom's power and grid businesses. Alstom is little changed in Paris.
Further in Paris, EDF is losing 2.7 percent and Safran is falling 2.1 percent.
Oil services provider Technip is losing 2 percent and building materials maker Saint-Gobain is retreating 1.4 percent.
BNP Paribas is marginally lower. The lender is reportedly nearing an agreement to plead guilty and pay $8 billion to $9 billion to settle allegations that it violated U.S. sanctions.
Bucking the trend, Alcatel Lucent and Arcelor Mittal are gaining 2.2 percent and 1 percent, respectively, on the CAC 40.
In London, Barratt Developments is losing 2.7 percent. Persimmon is down 2.1 percent.
Royal Bank of Scotland is falling 1.7 percent and Lloyds Bank is down 1.1 percent.
Shire, which last week rejected an acquisition proposal, is down 1 percent.
ARM Holdings is gaining 2.7 percent. Miners Rio Tinto and BHP Billiton are adding 2.7 percent and 2.1 percent, in that order.
The Asian stocks erased early gains to end mostly lower, as mounting political tensions between Hong Kong and the mainland and fears that the entire state of Iraq could soon fall into the hands of militants overshadowed signs of stabilization in the world's second-largest economy.
In the U.S., futures point to a cautious open on Wall Street. In the previous session, the major averages rose about 0.2 percent each on Friday, with the Dow and the S&P 500 both reaching fresh record closing highs, as investors continued to digest the Federal Reserve's supportive policy announcement earlier in the week.
Crude for August delivery is gaining $0.22 to $107.05 per barrel, while gold is losing $4.5 to $1312.1 a troy ounce.
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