European Stocks Flat as German and French Economies Slow

European stocks were flat in early trade Monday as economic data from Germany and France signaled renewed challenges for the region’s two largest economies.

The pan-European Stoxx 600 index opened slightly higher, gaining 0.06%, but quickly leveled off after business activity reports showed continued contraction. France’s CAC index dropped nearly 0.5% after the preliminary composite Purchasing Managers’ Index (PMI) came in at 47.4 for September. This marked an eight-month low, significantly below expectations of 50.6 and down from 53.1 in August. Any reading below 50 indicates shrinking economic activity.

Germany also saw its PMI dip, falling from 48.4 in August to 47.2 in September. This seven-month low reflects further economic contraction.

Shares of Commerzbank (GER:CBK) fell 5% after the German government stated it would not sell more shares in the bank, dampening takeover speculation after Italian lender UniCredit acquired a 9% stake.

Hugo Boss (GER:BOSS) shares also tumbled 5.3% following a downgrade by Bank of America Global Research, citing weaker demand from China. The retailer had already reduced its sales outlook due to market difficulties in China and the U.K.

Conversely, British property site Rightmove rose 2.3% after rejecting another takeover offer from Australian firm REA Group.

Global markets continued to react to recent interest rate cuts, as U.S. Dow futures remained steady following last week's Federal Reserve decision.