European Markets Finished Mixed At The Start Of The New Week

(RTTNews) - The European markets ended Monday's session with mixed results. Some positive sentiment was generated by some upbeat earnings news and M&A activity, but China remains a concern among investors. This week will also see policy meetings for the European Central Bank, the Bank of England and the U.S. FOMC. Investors will also be watching for the release of the U.S. GDP data on Wednesday and the U.S. jobs report for July at the end of the week.

China has ordered a nation-wide audit of the debt accumulated by the country's local governments as the authorities feared their heavy indebtedness may threaten the prospects of the economy. In a statement on Sunday, the National Audit Office said "in line with a request of the State Council, the NAO will organize auditing agencies across the country to carry out an audit of government debt."

Growth in China's industrial profits eased in June mainly due to a slower growth in business revenue, data from the National Bureau of Statistics showed Saturday. Combined industrial profits advanced 6.3 percent from the previous year to CNY 502.4 billion, much slower than the 15.5 percent rise in May.

The Euro Stoxx 50 index of eurozone bluechip stocks declined by 0.14 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, lost 0.14 percent.

The DAX of Germany climbed by 0.17 percent and the SMI of Switzerland gained 0.22 percent. The CAC 40 of France rose by 0.00 percent and the FTSE 100 of the U.K. dropped by 0.42 percent.

In Frankfurt, Commerzbank declined by 1.13 percent and Deutsche Bank lost 0.64 percent.

Berenberg initiated Volkswagen with a ''Buy'' rating. The stock finished with a gain of 1.02 percent.

Publisher Axel Springer fell by 0.33 percent, after HSBC upgraded the stock to ''Overweight.''

Wincor Nixdorf climbed by 1.36 percent, after a broker upgrade.

In Paris, Essilor International advanced by 6.18 percent. The company agreed to purchase the remaining stake in Transitions Optical Inc. that it does not already own.

On Sunday, advertising firm Publicis Groupe announced combination with US-based Omnicom Group Inc. in a "merger of equals." Publicis Groupe finished higher by 0.08 percent.

Danone gained 3.15 percent. The dairy giant reported impressive results for the first half of the year, helped by higher sales of baby nutrition products.

Credit Agricole fell by 1.43 percent, after JP Morgan downgraded it to "Neutral" from "Overweight."

In London, Reckitt Benckiser decreased by 0.82 percent after announcing financial results.

Ryanair lost 2.96 percent, after its first-quarter profit fell 21 percent.

Advertising firm WPP rose by 0.60 percent, after UBS upgraded it to ''Buy'' from ''Neutral.''

Barclays dropped by 3.47 percent, due to rumors the lender will increase its capital through the issuance of new securities.

Business confidence in Italy increased notably in July from the previous month, and to a larger extent than economists had forecast, latest data showed Monday.

The seasonally adjusted business confidence index, which refers to manufacturers' assessment of their business conditions, advanced to 91.7 in July from the previous month's revised score of 90.5, statistical office Istat said. Economists expected the index to move up to 91 from June's originally reported 90.2.

House price inflation in the UK eased in July as demand from first-time buyers weakened at the start of summer holidays, a survey by Hometrack revealed Monday. Average value of a house in England and Wales increased 0.3 percent month-on-month in July, slower than a 0.4 percent gain in June. London continued to drive overall house price growth with prices rising 0.7 percent.

U.K. mortgage approvals declined in June despite measures taken by the government and central bank to ease credit conditions, data from the Bank of England showed Monday. The number of loans approved for house purchases fell unexpectedly to 57,667 in June from 58,071 in May. It was forecast to rise to 59,500 in June.

British retailers expect sales volumes to rise again in the year through August, after recording its first rise in five months in July, the latest monthly Distributive Trades Survey from the Confederation of British Industry (CBI) showed Monday.

The survey pointed out that 39 percent of firms expect an increase in sales volumes in August compared with 29 percent predicting a decline. This resulted in a rounded balance of 10 percent.

Pending home sales in the U.S. saw a modest decrease in the month of June, according to a report released by the National Association of Realtors on Monday, with pending sales pulling back off their highest level in over six years.

NAR said its pending home sales index edged down 0.4 percent to 110.9 in June from a downwardly revised 111.3 in May. Economists had been expecting the index to drop by about 1.4 percent.