Stock indices closed lower on the mixed manufacturing PMI data from the Eurozone, on falling oil prices and on the weak Chinese manufacturing PMI data. The Chinese manufacturing PMI fell to 49.4 in January from 49.7 in December, according to the Chinese government on Monday. It was the lowest reading since August 2012. Analysts had expected the index to decline to 49.6.
The Chinese Markit/Caixin manufacturing PMI rose to 48.4 in January from 48.2 in December. The increase was driven by a softer drop in new orders.
Markit Economics released its final manufacturing purchasing managers' index (PMI) for the Eurozone on Monday. Eurozone's final manufacturing purchasing managers' index (PMI) dropped to 52.2 in January from 53.2 in December, in line with the preliminary reading.
The drop was driven by a softer growth in output and new orders.
"Growth of order books, exports and output all slowed. If the slowdown in business activity wasn't enough to worry policymakers, prices charged by producers fell at the fastest rate for a year to spur further concern about deflation becoming ingrained," Chris Williamson, Chief Economist at Markit said.
Germany's final manufacturing purchasing managers' index (PMI) fell to 52.3 in January from 53.2 in December, up from the preliminary reading of 52.1.
The index was driven by a weaker rise in production and new orders. Lower energy and raw material prices weighed on input costs.
France's final manufacturing purchasing managers' index (PMI) declined to 50.0 in January from 51.4 in December, in line with the preliminary reading.
The index was driven by a drop in new orders, and input and output prices.
Markit Economics released its manufacturing purchasing managers' index (PMI) for the U.K. on Monday. The Markit/Chartered Institute of Procurement & Supply manufacturing PMI for the U.K. increased to 52.9 in January from 52.1 in December, exceeding expectations for a rise to 51.8. December's figure was revised up from 51.9.
The increase was driven by a rise in domestic demand.
"The UK manufacturing sector registered an uptick in its rate of expansion at the start of 2016, shrugging off a number of potential headwinds, ranging from global financial market volatility to localised flooding in the North of the country. The domestic market remains the key growth driver," Markit's Senior Economist Rob Dobson said.
The Bank of England (BoE) released its number of mortgages approvals for the U.K. on Monday. The number of mortgages approvals in the U.K. was up to 70,837 in December from 70,424 in November, exceeding expectations for a decrease to 69,600. November's figure was revised up from 70,410.
Consumer credit in the U.K. rose by £1.169 billion in December, missing expectations for an £1.300 billion increase, after a £1.479 billion gain in November. November's figure was revised down from £1.476 billion.
Indexes on the close:
Name Price Change Change %
FTSE 100 6,060.1 -23.69 -0.39 %
DAX 9,757.88 -40.23 -0.41 %
CAC 40 4,392.33 -24.69 -0.56 %