European Stocks Flat As China Data Disappoints

(RTTNews) - A mid-day rally in the European markets fizzled out on Monday, leaving most of the major averages little changed from the previous session.

Traders remained nervous amid disappointing Chinese economic data and signs of new fighting between Ukraine and Russian-backed separatists.

The Euro Stoxx 50 index of blue-chip shares slipped 0.13 percent, and is down about 1.2 percent from a week ago.

The German DAX gained 0.09 percent, while Switzerland's SMI is losing 0.01 percent. The French CAC 40 slipped 0.29 percent and the FTSE 100 index of the U.K. fell 0.10 percent.

In Frankfurt, Lufthansa slid 1.2 percent after its pilots from Frankfurt Airport announced a strike on September 16.

LEG Immobilien lost 1.3 percent. The stock was cut to "Neutral" from "Buy" at Goldman Sachs.

TUI AG gained 1.5 percent. The company and its unit TUI Travel have reached agreement on the terms of a recommended all-share nil-premium merger. TUI Travel is up 2 percent in London.

Air France-KLM lost 3 percent. The firm is operating only 48 percent of its flights on Monday as 60 percent of its pilots refrained from work on the first day of the week long strike announced by the pilots union.

Monitise slipped 3.7 percent after full year loss widened.

Dutch brewer Heineken N.V. confirmed Sunday that SABMiller Plc had approached the company regarding a potential acquisition.

However, Heineken, after consulting its majority shareholder, rejected the proposal and intends to remain independent. Heineken added 1.4 percent in Amsterdam, while SABMiller jumped 9.5 percent in London.

On the economic front, the Eurozone trade surplus decreased for the second straight month in July, Eurostat reported. The trade surplus fell unexpectedly to a seasonally adjusted 12.2 billion euros from 13.8 billion euros in June. The surplus was forecast to rise to 15.5 billion euros.

Swiss producer and import prices declined for the eleventh consecutive month in August, data from the Federal Statistical Office showed. Producer and import prices fell 1.2 percent year-on-year in August after decreasing 0.8 percent in July. The index has been falling since last October.

The Organization for Economic Cooperation and Development lowered its growth outlook for major developed nations and urged the European Central Bank to take further steps to boost demand.

In its interim economic assessment, the OECD said a moderate expansion is underway in most major advanced and emerging economies, but growth remains weak in the euro area.

Chinese industrial production and retail sales increased at slower than expected rates in August, data from the National Bureau of Statistics showed Saturday. Industrial production rose 6.9 percent year-over-year in August following a 9 percent rise in July. This was slower than the 8.8 percent growth estimated by economists.

A separate report showed that Chinese retail sales expanded 11.9 percent year-over-year in August, which was slower than the 12.2 percent increase in July. This was also slower than the 12.1 percent increase expected by economists.