European Shares Decline After France's Credit Rating Cut

(RTTNews) - European stocks edged lower on Monday after credit ratings agency Moody's unexpectedly downgraded France's rating, adding to pressure on the nation's borrowing costs and raising doubts over whether a new government can mend the deteriorating financial situation.

There was some cheer on the data front as a survey showed the decline in eurozone business activity eased this month.

HCOB's preliminary composite eurozone Purchasing Managers' Index, compiled by S&P Global, rose to 49.5 in December from November's 48.3.

Eurozone government bond yields held steady after European Central Bank president Christine Lagarde said the darkest days of high inflation are behind and the central bank will continue to lower its key interest rate.

The pan European STOXX 600 slipped 0.2 percent to 515.27 after falling half a percent in the previous session to snap a three-week winning streak.

The German DAX, France's CAC 40 and the U.K.'s FTSE 100 were down between 0.2 percent and 0.6 percent.

In corporate news, healthcare company Novo Nordisk A/S gained nearly 2 percent after an announcement that it plans to invest 8.5 billion Danish kroner to establish a completely new production facility in Odense, Denmark.

Swiss biopharma Basilea Pharmaceutica surged 4 percent after it entered into an exclusive distribution and license agreement with Innoviva Specialty Therapeutics for the commercialization of Basilea's hospital anti-MRSA antibiotic Zevtera or ceftobiprole in the United States.

Porsche Automobil Holding SE lost nearly 2 percent. The company withdrew its profit guidance for 2024, citing potential non-cash impairment charges related to its investment in Volkswagen AG and Porsche AG.

Mass-media conglomerate Vivendi soared 33 percent In Paris as its newly spun-off entities Canal+, Havas and Louis Hachette Group started trading in London, Amsterdam and Paris respectively.

Gambling outfit Entain that owns Ladbrokes plunged 5 percent in London after Australia's anti-money laundering regulator had opened civil penalty proceedings related to alleged breaches of the country's contraventions anti-money laundering and counter-terrorism law.

Ricardo, a strategic, environmental, and engineering consulting company, gained about 1 percent after an announcement that its Australian unit has signed an agreement to acquire 85 percent of E3 Advisory for approximately A$101.4 million or 51.0 million pounds.