European stock markets slumped Monday to kick off the week, hurt by more weak data from China and a continued slide in car stocks.
The Stoxx Europe 600 index SXXP, -2.21% dropped 2.2% to end at 341.57, after closing lower for a second straight week on Friday.
China’s industrial profits fell 8.8% in August, a sign the country’s slowing economy has started to hit corporate profits. Miners were hurt by the news, with shares of Rio Tinto PLC RIO, -4.78% RIO, -4.43% RIO, -0.41% down 4.8% and BHP Billiton PLC BLT, -6.03% BHP, -4.61% BHP, +0.96% off 6%.
Commodities trader and mining giant Glencore PLC GLEN, -29.42% GLCNF, -27.70% sank 29% after Investec analysts suggested in a report that the company’s equity value could evaporate against its large debt pile unless commodity prices improve or the company launches a substantial restructuring.
Glencore said it is selling its Araguaia nickel project in Brazil for $8 million, as part of its plan to sell non-core assets to pay down debt.
The mining losses weighed on the U.K.’s FTSE 100 index UKX, -2.46% which fell 2.5% to 5,958.86.
U.S. stocks were also lower.
In Germany, the Volkswagen AG VOW3, -7.71% VLKAY, -5.96% emission-test scandal continued to weigh on car makers, sending the DAX 30 index DAX, -2.12% down 2.1% to 9,483.55. Read: Volkswagen CEO vows action on emission scandal
Volkswagen slumped 7.5%, as German prosecutors said they have opened a criminal investigation into former VW boss Martin Winterkorn. Daimler AG DAI, -3.78% DDAIY, -2.30% lost 3.2%, and BMW AG BMW, -2.98% fell 2.9%.
France’s CAC 40 index PX1, -2.76% dropped 2.8% to 4,357.05.
In Spain, separatist parties won a majority of seats in Catalonia’s parliamentary elections on Sunday, setting the stage for a standoff with the national government in Madrid, which has vowed to block a push for Catalan independence. The Spanish benchmark the IBEX 35 IBEX, -1.32% ended down 1.3% at 9,394.20.
Source: MarketWatch
