Investing.com – European Stock Markets Drift Lower

European stock markets drifted lower Monday, affected by disappointing regional activity data and increased political uncertainty.

At 03:55 ET (08:55 GMT), the DAX index in Germany was down by 0.1%, the CAC 40 in France fell by 0.3%, and the FTSE 100 in the U.K. dropped by 0.1%.

Eurozone Manufacturing Activity Slips

Eurozone manufacturing activity remained in contraction in August. The final Eurozone manufacturing Purchasing Managers’ Index, compiled by S&P Global, came in at 45.8, slightly ahead of a preliminary estimate of 45.6 but well below the 50 mark indicating growth. This indicates a recovery in the manufacturing sector may be far off, particularly as Germany’s manufacturing sector, which accounts for about one-fifth of Europe’s largest economy, continued to decline, dropping to 42.4 in August from 43.2 in July.

The European Central Bank cut interest rates in June to stimulate the region’s economy and is expected to do so again later this month after eurozone inflation fell to a 2.2% in August, marking the lowest level in over three years.

Raised Political Uncertainty

Increased political uncertainty also weighed on sentiment, particularly after the Alternative for Germany (AfD) party became the first far-right party to win a state legislature election in Germany since World War Two, specifically in Thuringia. With a national election in Germany set for next year, these results may lead to infighting within Chancellor Olaf Scholz’s three-party coalition due to AfD’s anti-NATO, anti-immigration, and pro-Russia stance. Furthermore, the German government’s waning authority might complicate European policy, especially as France struggles to form a government following the snap elections in June and July.

Rightmove (OTC:RTMVY) Soars on Potential Offer

In corporate news, Rightmove (LON:RMV)’s stock surged by 20% after REA Group, an Australian digital property giant, announced a potential cash and share offer for the U.K. online real estate platform.

Crude Edges Higher

Crude prices inched higher on Monday, recovering from recent losses as traders examined mixed signals from Chinese manufacturing surveys. As of 04:55 ET, U.S. crude futures (WTI) traded up by 0.2% at $73.70 per barrel, while Brent crude climbed by the same margin to $77.07 per barrel. An official survey indicated that Chinese manufacturing activity dropped to a six-month low in August after poor performance in the second quarter, while a private survey suggested improvement in manufacturing activity, adding to market complexities. Both Brent and WTI suffered losses last week, marking two consecutive months of weaker performance due to demand concerns, despite disruptions in Libyan oil supply and tensions in the Middle East.