European Markets Finished Mixed On U.S. Concerns & China Data

(RTTNews) - The European markets ended Monday's session with mixed results. Investor sentiment was impacted by some weaker than expected Chinese economic data, as well as concerns over the continued stalemate in U.S. budget talks. The partial shutdown of the U.S. government has reached day 14 and the nation's borrowing limit will be reached in just 3 days.

President Obama rejected a plan from House Republicans that would have temporarily raised the debt ceiling, but linked reopening the government to certain Republican policy conditions. The focus of the negotiations now switches to the Senate, where lawmakers are considering a proposal that would fund the government, repeal the medical device tax in the health care law, and give federal agencies flexibility to manage the sequester.

China's consumer price inflation climbed to its highest level in seven months in September, data from the National Bureau of Statistics showed Monday, dampening prospects for an easier monetary policy to support economic growth.

The CPI inflation rate rose to 3.1 percent in September from 2.6 percent in August. Economists had forecast a more modest increase to 2.8 percent. The rate was the highest since February, when inflation was at 3.2 percent.

Data published by the General Administration of Customs on Saturday showed that the county's exports declined unexpectedly, dropping by 0.3 percent annually in September.

The Ernst and Young Item Club on Monday said there will be rapid improvement in housing market but fears of a housing market bubble are misplaced. Further, in the latest quarterly autumn forecast, the think tank raised U.K.'s growth forecast citing improving outlook for the housing market and consumer confidence.

For 2013, growth is seen at 1.4 percent, up from the prior estimate of 1.1 percent. Likewise, projection for next year was lifted to 2.4 percent from 2.2 percent.

The Euro Stoxx 50 index of eurozone bluechip stocks increased by 0.01 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, added 0.10 percent.

The DAX of Germany dipped by 0.01 percent, but the CAC 40 of France rose by 0.07 percent. The SMI of Switzerland decreased by 0.10 percent, but the FTSE 100 of the U.K. climbed by 0.29 percent.

In Frankfurt, BMW fell by 0.16 percent. The automaker unveiled its all-new 4-Series Convertible, replacing the 3-Series Convertible, ahead of its Los Angeles auto show debut next month.

Daimler declined by 0.38 percent, on reports the company and Evonik are in search for a new partner for their Li-Tec joint venture.

In Paris, Dassault Systemes plunged by 10.53 percent. The software maker warned its revenue growth will be sharply lower than expected previously this year. German software maker SAP AG is losing half a percent.

Peugeot sank by 9.06 percent, after the automaker reiterated that it is examining industrial and commercial developments with different partners, comprising the financial implications that would result from them.

EDF advanced by 2.20 percent, after reports that it is close to reaching a deal to build and operate nuclear reactors in the United Kingdom.

In London, Vodafone Group climbed by 0.80 percent. The telecom giant said that the voluntary public takeover offer for Kabel Deutschland Holding AG, by its unit, Vodafone Vierte Verwaltungs AG, has been settled and completed as of October 14.

Diageo dropped by 0.99 percent, after Investec Securities downgraded it to "Sell" from "Hold."

Johnson Matthey climbed by 5.88 percent, after JP Morgan upgraded it to "Overweight" from "Neutral."

Croda International rose by 1.33 percent, despite a downgrade by JP Morgan to "Neutral" from "Overweight."

Industrial production in the Eurozone increased at a faster-than-expected pace in August, recovering from the previous month's decline, latest data showed Monday. Industrial production increased a seasonal1y adjusted 1 percent compared to July, when output recorded a 1 percent contraction, statistical office Eurostat said.

Economists had forecast a more modest increase of 0.8 percent for August, following July's originally reported 1.5 percent fall. In June, production had increased by 0.7 percent.

Irish construction sector returned to growth in September with activity rising for the first time in more than six years, a survey published by Markit Economics showed Monday. The headline Ulster Bank construction purchasing managers' index rose to 55.7 in September from 49.7 in August, registering above the 50 no-change mark for the first time since May 2007.

Switzerland's producer and import price index remained unchanged in September compared with a year earlier, data from the Federal Statistical Office revealed Monday.