A red wave hits European stocks as PMI indicators are released and Fitch downgrades.

Most European stock indices experienced varied losses during trading on Monday, coinciding with the release of Purchasing Managers’ Index (PMI) data for the services and manufacturing sectors in the region. The data released so far indicated weak performance in the two largest economies in the eurozone.

The largest losses were seen in the French stock index after Moody's credit rating agency unexpectedly announced on Saturday a downgrade of France's credit rating from Aa2 to Aa3. The agency highlighted expectations of weakened public finances in France over the coming years due to ongoing political instability following the dismissal of the Prime Minister.

Regarding trading, the performance of European stock indices at the start of today’s session was as follows:

• The Euro Stoxx 600 index declined by 0.10%, recording 515.94 points.
• The French CAC 40 index fell by 0.48% to 7,375.13 points, after data showed that the French manufacturing sector continued to contract this month as well, coming in below expectations.
• The German DAX index dropped by 0.24%, reaching 20,354.02 points, after the manufacturing sector recorded its largest contraction in three months.
• The British FTSE 100 index decreased by 0.12% to 8,290.98 points.
• The Italian FTSE MIB index rose by about 0.16% to 34,941.99 points.
• The Spanish IBEX 35 index marginally decreased by 0.08%, recording 11,742.70 points.