European Markets Dropped On China Concerns

(RTTNews) - The European markets ended Monday's session solidly in negative territory. Concerns over China returned to the forefront, after the nation released some disappointing economic data. Worries over China prompted further weakness in commodity prices, which weighed heavily on European mining stocks. Automakers also remained under pressure due to the Volkswagen emission scandal.

China's industrial profits declined in August as product prices continued to decrease, the National Bureau of Statistics reported Monday. Industrial profits fell 8.8 percent in August from a year ago, following a 2.9 percent drop in July.

The International Monetary Fund Managing Director Christine Lagarde said global growth outlook is likely to be revised down due to weak expansion in emerging economies.

In an interview with Les Echos, she said, "We are in a recovery process whose pace is decelerating." There is a shift between emerging and developed countries.

Emerging economies are no longer pulling the recovery, while developed countries are gaining momentum, Lagarde added.

A growth of 3.3 percent this year is no longer realistic, nor 3.8 percent global growth next year, she said. Nonetheless, she expects growth to remain above the 3 percent threshold.

The Euro Stoxx 50 index of eurozone bluechip stocks decreased by 2.37 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, lost 2.25 percent.

The DAX of Germany dropped by 2.12 percent and the CAC 40 of France fell 2.76 percent. The FTSE of the U.K. declined by 2.46 percent and the SMI of Switzerland finished lower by 1.47 percent.

In Frankfurt, chemicals company Lanxess lost 3.66 percent and Basf lost 2.29 percent. Potash maker K+S decreased by 4.29 percent. Basf announced a new cost-cutting program, adding that it plans to reduce capital expenditures.

Volkswagen sank by 7.46 percent. German prosecutors have launched a criminal investigation against the former CEO Martin Winterkorn and other unnamed executives. Daimler declined by 3.15 percent and BMW lost 2.92 percent.

Deutsche Bank weakened by 4.68 percent and Commerzbank surrendered 2.61 percent.

In Paris, Renault dropped 4.66 percent and Peugeot surrendered 5.23 percent.

Societe Generale decreased by 4.05 percent and BNP Paribas weakened by 3.86 percent. Credit Agricole also finished down by 3.43 percent.

In London, SABMiller climbed 1.30 percent. The Sunday Times reported that Belgian brewer Anheuser-Busch InBev NV, known as AB InBev, could make a takeover bid worth about $106 billion for the British brewer.

Vodafone lost 4.80 percent, after the telecom giant said its discussions with cable company Liberty Global have been terminated.

Glencore plummeted 29.42 percent. Investec Securities reportedly said in a report that if commodity prices don't rebound, the value of Glencore's stock is "virtually eliminated."

Anglo American dropped 10.09 percent and BHP Billiton fell 6.03 percent. Rio Tinto weakened by 4.78 percent and Antofagasta decreased by 4.94 percent. Standard Chartered declined 4.91 percent and Barclays lost 3.82 percent. Royal Bank of Scotland surrendered 2.95 percent and HSBC tumbled 2.91 percent.

Novo Nordisk dipped by 0.75 percent in Copenhagen, after the U.S. Food and Drug Administration approved its Tresiba insulin product.

SBM Offshore jumped 14.06 percent in Amsterdam. The Netherlands-based oil-field services provider said it received written notification from Petrobras of its ability to participate in the recently issued Libra and Sépia FPSO tenders in Brazil.

Genentech, a member of the Roche Group, announced positive results from pivotal study of investigational immunotherapy atezolizumab in specific type of advanced bladder cancer at 2015 European Cancer Congress. Roche added 0.48 percent in Zurich.

England/Wales house price growth eased to a 21-month low in August, data from Land Registry showed Monday. House prices advanced 4.2 percent year-on-year in August, which was the slowest growth since November 2013, when it climbed 3.5 percent. In July, house prices rose 4.6 percent and by 4.9 percent in June.

Italy's consumer confidence and business sentiment remained strong in September at their highest level in more than two years, the statistical office ISTAT said Monday. The consumer confidence index climbed to 112.7 from 109.3 in August, which was revised from 109. The index rose for a second straight month.

U.S. consumer spending rose a little more than economists had predicted last month, according to new government statistics released Monday. This came despite a slower-than-expected expansion in income.

Data released by the U.S. Department of Commerce showed that personal spending rose by 0.4 percent in August. Economists had expected the figure to rise by 0.3 percent.

Personal income also increased during the month. The figures showed a 0.3 percent advance during August, below expectations of a 0.4 percent increase.

A measure of strength in the housing market unexpectedly declined for August, raising concerns that home sales figures might be poised for a decline in the near future. The National Association of Realtors revealed that its pending home index fell 1.5 percent in August. This came as a surprise to economists, who were generally expecting a 0.5 percent increase for the month.