European Stocks Open Lower Over Global Economic Growth Concerns

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By Jacob Maslow

European stock markets suffered on Monday following the news that Chinese manufacturing data was disappointing. France’s CAC 40 is down 1.07%, Germany’s DAX 30 is down 1.04% and the Euro Stoxx 50 is down 0.88%.

China’s manufacturing purchasing managers’ index slipped to 49.4 in January, lower than December’s 49.7 reading. Analysts originally expected that the index would slip to 49.6. Fears were reignited that China’s economy may be in a slowdown.

Most financial stocks struggled in early morning trading, with the Societe Generale (SOGN) down 1.49%, BNP Paribas (BNPP) down 1.57% and Germany’s Deutsche Bank (DBKGn) up just 0.06%.

Italian lenders were also down greatly on the day, with the Intesa Sanpaolo (ISP) down 2.22% and Unicredit (CRDI) down 1.13%.

Vallourec (VLLP) has had a rollercoaster of a day, falling 14.3% to start the day before recovering up 11.11%. The steelmaker announced that the company will raise €1 billion in a restructuring plan in Europe and Brazil. The company plans to raise the money by selling the shares, and stated that the falling oil prices have caused many oil companies to reduce their investment in the company.

London’s FTSE 100 is also down over 1% on the day, with mining stocks taking a major hit. Glencore (GLEN) and Anglo American (AAL) are both down by over 3% on the day.

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