European Markets Lower; Tesco Tumbles

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PARIS (Alliance News) - The European markets are in negative territory on Monday, following weak cues from Asia, ahead of the Chinese manufacturing data due on Tuesday. Investors were apprehensive amid speculation concerning China scaling down its domestic economic growth forecast.

On the economic front, at 10 am ET, the European Commission is expected to release its preliminary consumer sentiment report. The consumer sentiment index is expected to come in at -10.5 in September following the -10 score in August.

European Central Bank President Mario Draghi is due to testify on monetary policy before the European Parliament's Economic and Monetary Committee in Brussels today, with investors looking for fresh hints at the possibility of quantitative easing.

The Euro Stoxx 50 index of eurozone bluechip stocks is losing 0.14%, while the Stoxx Europe 50 index, which includes some major UK companies, is falling 0.41%.

The German DAX is losing 0.24%, the French CAC 40 is falling 0.26% and the FTSE 100 index of the UK is declining 0.85%. Switzerland's SMI is losing 0.29%.

In Frankfurt, Commerzbank is losing 1.8% while Deutsche Bank is fractionally lower.

K+S and ThyssenKrupp are falling around 1.7% each.

Siemens is losing moderately after deciding to buy US-based Dresser Rand in a transaction valued at about USD7.6 billion, including debt.

Deutsche Wohnen is declining 1.5%. Merrill Lynch cut the stock to 'Underperform' from 'Neutral.'

Merck KGaA agreed to buy Sigma-Aldrich Corp. for USD140 per share in cash, in a transaction valued at USD17.0 billion. The stock is modestly lower.

Meanwhile, Kuka is gaining around 2%, after Citigroup started the stock with a 'Buy' rating.

In Paris, Publicis Groupe is losing 2.8% and Vallourec is falling 1.8%.

Michelin and Kering are down around 1% each.

Meanwhile, EDF is gaining 1.3%. Oil giant Total is up 0.4% after it announced an additional asset sale program of USD10 billion in 2015-17.

In London, Tesco is declining around 8% after the retailer announced that it identified overstatement of its first-half profit forecast.

Rio Tinto, Glencore and Anglo American are losing between 3% and 2.8%.

Publishing Technology, a provider of software and services to the publishing industry, expects full year results to be significantly below market expectations. The stock plunged over 20%.

Sulzer, which had announced non-exclusive talks to buy Dresser Rand, is declining over 4% in Zurich.

The Asian stocks fell broadly amid concerns about a slowing Chinese economy after Chinese Finance Minister Lou Jiwei said the country would not make major policy changes despite downward pressure on economic growth.

In the US, futures point to a lower open on Wall Street. In the previous session, the Dow inched up 0.1%, the S&P 500 edged down marginally and the tech-heavy Nasdaq slid 0.3%.

Crude for November delivery is falling USD0.29 to USD91.36 per barrel, while gold is sliding USD1.9 to USD1214.7 a troy ounce.