European Markets Pulled Back On Profit Taking & Energy Weakness

(RTTNews) - The European markets ended the first session of the new trading week in the red. The markets swung back and forth between gains and losses over the course of the trading session. Ultimately, the pull back in crude oil prices and weakness in financial stocks proved too strong to overcome.

Crude oil prices slipped back to around $31 per barrel Monday. A two day recovery in crude prices brought prices from their lowest level in 12 years, back to around $32 per barrel at the end of the previous trading week.

Profit taking also contributed to the weak performance in Europe Monday. The markets staged a two-day rally at the end of the prior trading week. Investors are also looking forward to Wednesday's announcement from the U.S. Federal Reserve meeting.

Standard & Poor's Ratings Services upgraded its sovereign rating for Greece as it expects the nation to meet the conditions attached to EUR 86 billion bailout package.

The agency lifted the ratings to 'B-' from 'CCC+' with stable outlook.

The Greek government has recapitalized the country's systemic banks, and put into place budgetary consolidation measures since last summer, the rating agency noted.

Moreover, the economy proved more resilient than previously expected despite multiple shocks.

The rating agency expects Greece to meet the conditionality attached to the bailout package, opening the way for discussions on official debt relief.

The Euro Stoxx 50 index of eurozone bluechip stocks decreased 0.71 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, lost 0.93 percent.

The DAX of Germany dropped 0.29 percent and the CAC 40 of France fell 0.58 percent. The FTSE of the U.K. declined 0.39 percent and the SMI of Switzerland finished lower by 0.21 percent.

In Frankfurt, Wincor Nixdorf climbed 1.91 percent after the automated teller machines maker upgraded its earnings guidance for the current fiscal year 2015/2016.

Siemens rose 0.08 percent, after it has agreed to buy CD-adapco, a privately-held U.S. engineering software firm.

BMW decreased 0.99 percent and Daimler weakened by 1.60 percent. Volkswagen also declined 1.50 percent. U.S. regulators announced a new recall of about 5 million vehicles with potentially defective Takata Corp air bags.

Deutsche Bank sank 5.60 percent and Commerzbank dropped 3.55 percent.

In Paris, Technip tumbled 4.49 percent and Total surrendered 1.87 percent.

Societe Generale decreased 2.72 percent and Credit Agricole weakened by 2.58 percent. BNP Paribas also finished lower by 2.87 percent.

In London, Kingfisher dropped 6.12 percent, after the home improvement retailer announced five-year transformation to deliver 500 million pounds sustainable annual profit uplift.

BT Group fell 3.34 percent after a report into broadband investment from cross-party MPs urged the company to spin off its Openreach access network business.

Royal Bank of Scotland declined 4.12 percent and Lloyds Banking Group lost 5.56 percent. Barclays fell 4.67 percent and Standard Chartered surrendered 2.12 percent.

German business confidence eased sharply at the start of the year to its weakest level in eleven months, as global concerns such as market volatility and slowdown in the emerging economies hurt expectations significantly.

The Ifo business climate index dropped to 107.3 from 108.6 in December, which was revised from 108.7, the Munich-based Ifo Institute said Monday. Economists had forecast a 108.4 score.

The total value of construction orders received by the German construction sector grew notably in November, figures from Destatis showed Monday.

Orders in the construction industry rose sharply by a seasonally, working-day and price-adjusted 15.0 percent month-on-month in November. This was the highest growth rate in November since the beginning of the time series in 1991, the agency said.

Italy's retail sales decreased for the first time in eight months in November, though slightly, figures from the statistical office Istat showed Monday. Retail sales edged down 0.1 percent year-over-year in November, reversing a 1.8 percent rise in the preceding month.

Italy's industrial orders grew for the second straight month in November, data from the statistical office Istat showed Monday. Industrial orders rose 1.6 percent month-over-month in November, but slower than the 4.6 percent gain in the preceding month.

British manufacturers reported a decline in orders at the start of the year on weaker demand for exports, the Industrial Trends Survey of the Confederation of British Industry showed Monday. The order book balance of the survey dropped to -15 percent in January from -7 percent in the previous month. Economists had forecast a -10 reading.