European equities moved modestly lower on Monday as a series of disappointing economic indicators from China renewed concerns about the outlook for the world’s second-largest economy.
Chinese consumer spending stagnated in July, while urban investment contracted at a faster rate and unemployment increased. The latest figures have added to expectations that Beijing may need to introduce further measures to support economic activity during the second half of the year.
Iran conflict and Hormuz risks remain in focus
Investors were also monitoring the lack of progress towards ending the U.S.-Iran war, with geopolitical tensions continuing to influence energy markets.
Brent crude futures traded around $89 a barrel as renewed fighting in Lebanon and further attacks on tankers in the Strait of Hormuz reduced hopes of an imminent resolution to the conflict.
Against this backdrop, France’s CAC 40 Index declined 0.4%, while the U.K.’s FTSE 100 Index and Germany’s DAX Index each slipped 0.1%.
Mining stocks gain as U.S. dollar weakens
Mining companies were among the stronger performers, with Antofagasta (LSE:ANTO), Glencore (LSE:GLEN) and Anglo American (LSE:AAL) moving higher.
The gains came as the U.S. dollar approached two-month lows following softer retail sales and consumer sentiment figures released on Friday.
A weaker dollar can provide support for dollar-denominated commodities, potentially benefiting shares of major mining groups.
AstraZeneca rises on positive Phase III results
In company news, HIAG Immobilien Holding (LSE:0QU6) advanced after the Swiss property company reported a sharp increase in first-half profit.
AstraZeneca (LSE:AZN) also climbed after the British pharmaceutical group announced positive results from its Phase III SAFFRON trial.
Optima Health (LSE:OPT), meanwhile, fell sharply after the workplace health and wellbeing services provider reported a substantial increase in debt alongside its full-year results.
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