Major stock indices in Europe traded in the red zone

European stocks traded in the red zone, as the decline in the shares of the airlines offset the increase in the banking sector and oil companies.

Certain influence on the dynamics of trade had data for Germany. Statistical Office Destatis reported that German factory orders rose at a faster pace in August, which is mainly on high level of domestic demand in August. The volume of industrial orders rose by 1 percent compared to July, when an increase of 0.3 percent (revised from +0.2 per cent) was recorded. It was the second consecutive increase in orders. Economists had expected orders to grow by only 0.2 percent. Domestic orders increased by 2.6 percent in August, while foreign orders fell by 0.2 percent. New orders from the euro area countries increased by 4.1 percent. In contrast, demand from other countries fell by 2.8 percent.

Meanwhile, the results of Markit Economics, showed that business activity in the German construction sector has reached in September a 4-month high. The PMI for the construction sector rose to 52.4 points from 51.6 points in August. Recall index value above 50 indicates expansion. It is worth emphasizing the growth in construction activity recorded 20 consecutive months. The survey also showed that German construction companies on average believe that the volume of construction will grow over the next 12 months.

Investors also await the publication of the ECB's report on monetary policy. "Most likely, the report will give little or no support for the idea that in the near future, the ECB would be ready to taper the asset purchase program. We expect the Central Bank announcement on December meeting to extend buying period for another 6 months after the March 2017 ", -. BNPP experts said.

The composite index of the largest companies in the region Stoxx Europe 600 fell 0.4 percent. Shares of the banking sector for the third consecutive day rise in price, which is the longest series in the past month.

UniCredit shares rose 2.5 percent after reports that Amundi SA is ready to offer 4 billion euros for Pioneer Global Management unit.

Shares of CaixaBank rose 3.1 percent. The cost of the French bank Societe Generale rose 2.9 percent, while quotations of German lender Deutsche Bank rose 0.8 percent, having recovered 16 percent from its record low reached last week.

Price Osram Licht AG shares rose 10 percent after news that the Chinese company plans to bid the German manufacturer of light bulbs and LEDs in the middle of October.

Capitalization of EasyJet Plc fell 5.7 percent, as the airline announced its first annual profit decline since 2009, referring to the drop in demand due to the terrorist attacks and a weak pound, which inflated costs in foreign currency.

At the moment:

FTSE 100 7008.24 -25.01 -0.36%

DAX -42.69 10543.09 -0.40%

CAC 40 4471.59 -18.36 -0.41%