Europe Stocks end mixed despite China Stimulus

European equities finished mixed Monday, pausing after a rally on Friday, and overlooking the news that China has cut interest rates for the third time in six months.

The pan-European Euro Stoxx 600 index closed around 0.3 percent higher led by food retailer Delhaize which surged over 14 percent and Ahold climbed as much as 8.2 percent with reports of merger talks between the two firms.

Meanwhile, the majority of major bourses starting the trading week in negative territory, with the French CAC slipping to close over 1.3 percent lower.

Airbus shares slipped as much as 3.5 percent after one of its military transport planes crashed on a test flight over the weekend. Shares of Mtu Aero Engines also sank 2.7 percent on Monday with the firm being a supplier of parts to Airbus.

London’s FTSE 100 and the German DAX both ended around 0.3 percent lower.

In general, Europe stocks bucked the trend set by Asian stock markets Monday as equities advanced following China’s decision to implement its third interest rate cut since November.

The People’s Bank of China (PBOC) announced the cut in its benchmark lending rate and one-year deposit rates by 25 basis points on Sunday, as growth in the Asian economic giant slowed to levels not seen since the global financial crisis.

U.S. stocks traded in a narrow range on Monday, following a strong rally on Friday’s jobs report, as investors awaited the week’s data releases.

In the aftermath of the U.K. election, re-elected Prime Minister David Cameron ruled out giving Scotland another independence referendum despite spectacular gains by Scottish nationalists. The U.K.’s FTSE 100 was one of the only gainers across Europe in Mondays session.

The Bank of England announced its latest monetary policy decision Monday, choosing not to increase rates from their record low of 0.5 percent.

Elsewhere, Greece’s reform talks with the Eurogroup of euro zone finance ministers, which continue Monday, are in focus. The Greek government remains hopeful that the talks will lead to vital aid being released, which will enable the country to avoid default.

Source: CNBC