European stocks close: stocks closed mixed on corporate earnings

Stock indices closed mixed on corporate earnings.

Standard & Poor's Ratings Services downgraded its outlook for the European Union (EU) to "negative" from "stable" on Monday. The long-term credit rating remained at AA+.

One of the reasons for the downgrade was that the EU is providing "higher-risk financing to EU member states, without the member states' paying in capital".

Meanwhile, the economic data from the Eurozone was weak. Eurozone's producer price index declined 0.1% in June, missing expectations for a flat reading, after a flat reading in May.

Intermediate goods and non-durable consumer goods prices were flat in June, and capital goods prices rose 0.1%, while durable consumer goods prices climbed 0.1%.

On a yearly basis, Eurozone's producer price index dropped 2.2% in June, in line with expectations, after a 2.0% fall in May.

Eurozone's producer prices excluding energy fell 0.4% year-on-year in May. Energy prices dropped at an annual rate of 7.0%.

Markit's and the Chartered Institute of Purchasing & Supply's construction purchasing managers' index (PMI) for the U.K. decreased to 57.1 in July from 58.1 in June, missing expectations for a rise to 58.4.

The decline was driven by a slower increase in business activity and incoming new work.

"Commercial activity was a key growth driver during July, which partly offset ongoing weakness in civil engineering and softer residential building trends. Sustained growth across the UK economy so far this year has firmed up demand for commercial building work, with construction companies noting a particularly strong appetite for new development projects among clients," an economist at financial data company Markit, Tim Moore, said.

Indexes on the close:

Name Price Change Change %

FTSE 100 6,686.57 -2.05 -0.03 %

DAX 11,456.07 +12.35 +0.11 %

CAC 40 5,112.14 -8.38 -0.16 %