European equities drop in downbeat start to week

Key European stock markets sank on Monday, getting the week off to a weak start as investors booked profits and frowned at poor German economic data, dealers said. London’s benchmark FTSE 100 index fell by 0.62 per cent to close at 6,823.51 points. The Paris CAC 40 gave up 1.41 per cent to 4,405.76 points and Frankfurt’s DAX 30 lost 1.03 per cent to 9,906.07 compared with Friday’s close. European equities gained ground last week, with Germany's DAX hitting a record high on surprisingly strong US jobs data and the European Central Bank's decision to keep its monetary policy loose.
- Downbeat German data -
On Monday, however, official data showed that German industrial output had contracted in May after being affected by the number of public holidays. Official data from the eurozone's largest economy showed industrial production declined by 1.8 percent, after slipping by 0.3 percent in April. Activity was undermined by the number of public holidays and bridging days, the ministry explained. In company news, stock exchange operator Deutsche Boerse fell in Frankfurt after receiving a broker downgrade from Credit Suisse. The group's share price slid 2.89 percent to 55.02 euros. In London, SABMiller's shares dropped 1.25 percent to 3,355,00 pence after the Britain-based brewer announced it will seek to sell its $1.09-billion (800-million-euro) stake in South African leisure division Tsogo Sun. SABMiller, which is listed in London and Johannesburg, said in a statement that after a strategic review it will dispose of its 39.6-percent stake in Tsogo Sun via a share placing and buyback. On the London Bullion Market, the price of gold weakened to $1,313 an ounce from $1,319.25 on Friday, according to AFP.