European equity markets were fairly mixed on Monday, while the euro has edged higher trading above 1.37 against the US dollar. The CAC and DAX extended gains and climbed 0.3% higher, while the IBEX and London benchmark equity index slid lower finishing the session 0.5% and 0.16% lower.
Due to the absence of economic data from the US and Eurozone, trading volumes were light, while the softer US dollar provided some support to the markets, as the USD index remained below the key level of 80.0.
In London, losses in financial and mining stocks overshadowed small gains in utility and technology companies. AstraZeneca fell sharply by 11.1% after rejecting a higher takeover bid from Pfizer. In miners, Rio Tinto and BHP Billiton fell by 1.87% and 0.56%, respectively.
Tomorrow, market participants will be keeping an eye on the release of the German producer prices as well as UK CPI inflation data. Due to the absence of key macroeconomic indicators from the US and Eurozone, we expect further consolidation within the recent range across the European equity markets, while currency movements could provide some momentum.