- Stocks finish off worst levels after US data
- BIS warns of buoyant capital markets
- Eurozone CPI figures in line with forecasts
- Brent crude futures slip
FTSE 100: -0.20%
CAC 40: -0.32%
FTSE MIB: -0.17%
IBEX 35: -0.33%
Stoxx 600: -0.03%
European stocks finished the day slightly lower but off their worst levels following relatively upbeat economic data out Stateside.
Acting as a backdrop, on Sunday the Bank for International Settlements, the so-called central bank of central banks, warned that global capital markets are extraordinarily buoyant and called on monetary authorities not to fall into the trap of raising rates "too slowly and too late".
Speaking of which, on Monday morning the European Commission approved a £1.4bn credit facility to Bulgaria following runs last week on two of the country's lenders, First Investment and Corporate Commercial Bank.
In the latest geopolitical news, over the weekend several hundred soldiers gathered outside the office of President Petro Poroshenko calling on him to take firmer action against pro-Russian rebels in the east of the country.
French Prime Minister Francois Hollande and German Chancellor Angela Merkel held telephone contacts with Poroshenko and Russian President Vladimir Putin in an attempt to pressure the latter into cutting the flow of arms into Ukraine. That came hours ahead of a deadline by which Russia had to drop its support for the separatists or face fresh economic sanctions.
Brent crude futures held lower at $112.42 a barrel. Iraqi government forces began an offensive over the weekend to dislodge ISIS form Tikrit. Perhaps more significantly, Iraq's Supreme Court ruled that exports from Kurdistan are legal.
BNP may have won small concession from DoJ
Shire was in focus after reports that AbbVie's Chief Executive is visiting London in a bid to woo the UK outfit. A fourth takeover bid is thought to be in the offing, with bankers having told the Sunday Times that it could value the firm at over £50 per share.
The US Department of Justice (DoJ) may unveil a $9bn settlement with French lender BNP Paribas as soon as today, Reuters reported. Critically, the lender may have won a six month reprieve on a ban on wholesale dollar
clearing, which may allow it to save some business in the space.
easyJet was the largest faller on the Footsie following a price target cut out of analysts at Bank of America.
From a sector stand-point the worst performance was seen in the following industrial groups within the DJ Stoxx 600: Banks (-0.53%), Travel&Leisure (-0.47%) and Automobiles&Parts (-0.20%).
Eurozone CPI in line with forecasts
Eurozone consumer prices advanced at a 0.5% year-on-year pace in June, as expected by analysts.
The Eurozone's money supply as measured by the M3 monetary aggregate expanded at a 1% year-on-year clip during the month of May, according to data from the European Central Bank (ECB). That was ahead of the 0.8% pace expected by analysts, who saw some signs of improved credit flows in the figures.
Data from the BoE revealed a £3.4bn increase in lending to non-financial companies during the month of May - the first rise in nine months and the largest since the series began in March 2011. Dr.Howard Archer at IHS Global Insight warned however that it may turn out to be just another false dawn.
Crude futures move lower
The euro/dollar was moderately higher, up by 0.33% to $1.3689.
Front month Brent crude futures were down by 0.783% to the $112.42/barrel mark on the ICE.