German Market Tumbles Amid China Worries

(RTTNews) - The German market was firmly in negative territory on Monday, following weak cues from Asia where stocks fell across the board after Chinese factory data disappointed investors and China's central bank set the reference rate for yuan at a more than 4-1/2-year low.

Eurozone manufacturing activity expanded at the fastest pace since April 2014, final survey data from Markit showed. The final manufacturing Purchasing Managers' Index rose to 53.2 in December from 52.8 in November. The flash score was 53.1.

The U.K. manufacturing sector growth eased unexpectedly in December, due to a further slowdown in growth of output and new orders, survey data from Markit Economics showed. The Markit/Chartered Institute of Procurement & Supply Purchasing Managers' Index for manufacturing fell to 51.9 in December from 52.5 in the previous month.

Meanwhile, U.K. mortgage approvals rose to a 3-month high in November, the Bank of England reported. The number of mortgages approved for house purchases rose to 70,410 in November from 69,867 in the prior month. It was forecast to rise to 69,900.

At 8.00 am ET, Destatis publishes Germany's preliminary inflation data. Consumer prices are forecast to rise 0.6 percent on a yearly basis in December after climbing 0.4 percent in November.

The Euro Stoxx 50 index of eurozone bluechip stocks declined 2.33 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, dropped 2.05 percent.

The DAX index declined 3.5 percent.

Utility RWE declined 5.6 percent and peer E.ON dropped 4.7 percent.

BMW, Daimler and Volkswagen lost between 4.8 percent and 4.1 percent.

Deutsche Bank was losing 5 percent while Commerzbank dropped 3 percent.

Lufthansa gained around 1 percent, thus becoming the only gainer on the DAX index.

Other markets in the region were also trading notably lower.

In the U.S., futures point to a lower open, after the New Year holiday.

Crude for February delivery gained $0.10 to $37.14 per barrel, while gold advanced $12.9 to $1073.1 a troy ounce.