By Sara Sjolin, MarketWatch
LONDON (MarketWatch) -- European stock markets staged
broad-based losses on Monday, tracking a weak sentiment in Asia,
where Chinese real-estate stocks tumbled after the country
tightened property-mortgage rules.
The Stoxx Europe 600 index dropped 0.4% to 287.85, adding to a
0.3% loss from Friday.
Mining firms posted some of the biggest losses in the
pan-European index, after the Chinese government late Friday
announced fresh measures to cool the property market, including
higher down-payments and mortgage rates on second homes in cities
with steep price gains. China is a major user of natural resources,
and any indicators of a slowdown in the economy and the
construction sector tend to weigh on mining firms. See: Property
stocks sink China but boost Japan.
Shares of Rio Tinto PLC (RIO) lost 3.5%, BHP Billiton PLC (BHP)
fell 2% and Kazakhmys PLC gave up 7%.
Shares of Anglo American PLC shaved off 3.1%, as Nomura cut the
miner to reduce from neutral.
The losses for mining firms weighed on the U.K.'S FTSE 100 index
which erased 0.6% to 6,338.62.
In the U.S., stock futures pointed to a lower open on Wall
Street, amid worries that politicians are making no progress toward
reversing billions of dollars in automatic spending cuts, referred
to as the sequester, which came into effect last Friday. Republican
congressional leaders on Sunday rejected calls by Democrats to
reduce the deficit through a mix of spending cuts and tax
increases, insisting on spending cuts alone.
Back in Europe, banks were among notable decliners, with shares
of HSBC Holdings PLC (HBC) off 2.9%. The heavyweight bank said
profit attributable to the ordinary shareholders of the parent
company fell 17% in 2012 to $13.5 billion. Additionally, it fell
short of performance targets set two years ago by Chief Executive
Stuart Gulliver. See: HSBC lifts dividend but continues to miss
targets.
In France, BNP Paribas SA lost 1.4% and Société Générale SA gave
up 0.5%.
Shares of oil major Total SA (TOT) shaved off 0.6%, as analysts
at Goldman Sachs reiterated their underweight rating on the oil and
gas sector. See: Goldman Sachs ups Europe health care, tech.
Shares of ArcelorMittal eased 2.5% to EUR10.96, after Goldman
Sachs cut the steelmaker's target price to EUR11.10 from
EUR11.50.
The CAC 40 index shed 0.4% to 3,686.57.
And in Germany, steel and technology group ThyssenKrupp AG fell
2.1%.
On a more upbeat note in Frankfurt, Deutsche Telekom AG gained
0.6%. The company said it would cooperate with Wi-Fi operator Fon
to expand its mobile data offering. See: Deutsche Telekom to work
with Wi-Fi operator Fon.
The DAX 30 index traded 0.7% lower at 7,658.73.
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