Stocks under pressure as oil slides over 2%; Syngenta up 11%
European markets came off of their highs on Monday to trade mixed as a sharp decline in oil prices and mining stocks capped gains in the market.
The pan-European STOXX 600 (^STOXX) was roughly flat in afternoon trade, with sectors pointing in different directions. All major bourses were in the red, with Germany's DAX (^GDAXI) slipping 0.55 percent.
Crude futures fell as much as 3 percent during afternoon London trade, as analysts showed doubt over whether leading producers could find a way of tackling the supply glut problem.
Analysts also said August's more than 20-percent crude rally appeared overblown, according to Reuters. Brent and U.S. WTI extended losses during trade, last standing around $49.60 and $47.45 respectively.
Meanwhile, Europe's worst performing sector was basic resources, off almost 2 percent as metal prices posted sharp losses, on the back of a stronger dollar. Precious metals firm, Fresnillo (London Stock Exchange: FRES-GB) sank 5.5 percent as spot silver fell sharply, while Glencore (London Stock Exchange: GLEN-GB), Anglo American (London Stock Exchange: AAL-GB) and Antofagasta (London Stock Exchange: ANTO-GB) were all deep in negative territory.
ArcelorMittal (Euronext Amsterdam: MT-NL) was sharply lower, after its South African unit agreed to pay a 1.5 billion rand ($110 million) fine for colluding to fix steel prices, Reuters reported.
Aside from commodities, the U.S. Federal Reserve is expected to be a key area of focus for investors worldwide this week, as the central bank is set to meet later on this week at the Federal Reserve Bank of Kansas City's annual economic policy symposium at Jackson Hole, Wyoming.
During the symposium, Fed Chair Janet Yellen will speak on Friday, with investors watching closely for comments on the U.S. economy and for any indications of when the Fed may raise rates.
Several Fed officials have commented on the timing of a rate hike, while Fed Vice-Chairman Stanley Fischer said on Sunday that the U.S. central bank was near to hitting its targets for full employment and 2 percent inflation.
Looking at individual stocks, the U.S.-based Committee on Foreign Investment in the United States (CFIUS) cleared ChemChina's $43 billion takeover of Swiss agrochemical group Syngenta (Swiss Exchange: SYNN-CH). The news sent Syngenta shares to the top of the STOXX 600, last standing above 11 percent.
Shares of French retail giant Carrefour (Euronext Paris: CA-FR) were sharply higher after Bernstein raised its price target and outlook on the stock. Meanwhile, Kingspan Group (Irish Stock Exchange: KRX-IE) rose 5 percent, after publishing better-than-expected results for its first half of 2016.
Elsewhere, Volkswagen (XETRA:VOW3-DE) shares were lower after the carmaker said 25,000 workers were affected by disruptions at six plants following a dispute with its suppliers.
Sweden's Getinge sank over 3.5 percent, after the health care group's board of directors decided to replace Alex Myers, its president and CEO. Joacim Lindoff has been appointed the firm's acting president and CEO.
While miners dominated the bottom of the STOXX 600, U.K. housebuilders were higher during trade with Taylor Wimpey (London Stock Exchange: TW.-GB), Bovis Homes (London Stock Exchange: BVS-GB), Bellway and Persimmon (London Stock Exchange: PSN-GB) all up 2 percent or more each.
