European stocks close: most stocks closed lower on concerns over Chinese economy

Stock indices traded lower. Concerns over a slowdown in Chinese economy weighed on markets. Market participants are awaiting the release of Chinese preliminary HSBC manufacturing purchasing managers' index on Tuesday. Analysts expect the HSBC manufacturing purchasing managers' index to decline to 50.0 in September from 50.2 in August. That could provide more evidence of a slowdown in Chinese economy.

Comments by China's Finance Minister Lou Jiwei damped speculation the government will boost economic stimulus measures.

The European Central Bank President (ECB) Mario Dragh said at the EP's Economic and Monetary Affairs Committee today the economic recovery in the Eurozone is slowing and geopolitical tensions could hurt business and consumer confidence. He reiterated inflation will remain at low levels over the coming months, before increasing during 2015 and 2016 and the ECB is ready to implement additional unconventional instruments.

Germany's Bundesbank released its monthly report today. Bundesbank said the country's economy remains robust. Bundesbank added that the general economic trend will stay positive despite the slowing pace of expansion in the first half of 2014.

Consumer confidence in the Eurozone fell to -11.4 in September from -10 in August, missing expectations for a decline to -11.

Indexes on the close:

Name Price Change Change %

FTSE 100 6,773.63 -64.29 -0.94%

DAX 9,749.54 -49.72 -0.51%

CAC 40 4,442.55 -18.67 -0.42%