This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

European Stocks Sink on Weak Eurozone Data

LONDON (The Deal) -- European markets sank in early trading on Monday and Asian markets were mixed.

The day in Asia started well, buoyed in part by stronger than a stronger-than-expected HSBC preliminary purchasing managers index flash for China unexpectedly showing a return to growth in June after five months of contraction. But China stocks traded in Hong Kong put in a poor performance, especially in the automotive sector. European stocks were hit by disappointing eurozone purchasing managers indices from Markit, with a particularly sharp drop in France to a four-month low and well into contraction territory. And the turmoil in Iraq -- with its potential impact on oil prices -- has also tempered market enthusiasm this morning.

Much attention Monday is centered on General Electric's (GE) apparent success in winning its fight against Siemens (SI) and Mitsubishi Heavy Industries in the battle for French engineering group Alstom. The deal values Alston at 11.4 billion euros ($15.5 billion). GE will buy Alstom's generator manufacturing unit, renewable power operations and power grid operations, while Alstom will buy GE's train signaling operations, for an enterprise value of about 600 million euros. Alstom will also reinvest in joint ventures in the grid, renewable energy, and nuclear and steam turbine operations, while the French government will acquire a 20% stake in Alstom from French conglomerate Bouygues.

Alstom's own share was flat this morning, but Siemens was down 1.14% in late morning at 99.13 a share euros, while MHI was up 1.8% in Tokyo at 638 yen. GE, which trades on the Swiss Stock Exchange in Zurich, advanced 0.82% to Sfr20.45. Bouygues was down 0.09% at 32.25 euros.

Meanwhile in London, the Automobile Association, better known as the AA, floated at 250 pence a share in an IPO valuing the business at 1.4 billion pounds ($2.38 billion). The deal provides a full exit from the roadside rescue company for private-equity firms CVC, Permira and Charterhouse, but the share slipped back in conditional trading on Monday to reach 239 pence.

In Madrid, Spanish discount grocer, Distribuidora Internacional de Alimentacion rose 3.5% after announcing it would sell its French business to supermarket heavyweight Carrefour.

By late morning, London's FTSE 100 was down 0.37% at 6,800, led by fears of a slowdown in the construction sector, while in Paris, the CAC 40 had fallen back 0.35% to 4,525. In Frankfurt, the DAX was also in negative territory, down 0.32% at 9,955. Tokyo closed up 0.13% at 15,369.28, while in Hong Kong, the Hang Seng slipped 1.68% to 22,804.81.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,960.57 -123.23 -0.72%
S&P 500 1,978.34 -9.64 -0.48%
NASDAQ 4,449.5640 -22.5440 -0.50%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs