Major European stock indices traded in the red zone

European stocks resumed the decline after a 4 day rally, reducing its biggest weekly gain in two months.

A certain pressure on the indexes had statistical data for the euro area. In a preliminary report, Markit Economics reported that business activity expanded in September at the slowest pace in 20 months. The composite PMI index fell to 52.6 points in September from 52.9 points in August. However, the index above 50 indicates that the expansion continues. Economists had expected the index to deteriorate to only 52.8 points. The average value of the index for the third quarter amounted to 52.9 points, which was lower than in the second quarter (53.1 points). In addition, the report showed that the index of business activity in the manufacturing sector improved to 52.6 points from 51.7 points in August. It was expected that the rate will drop to 51.5 points. At the same time, the PMI index for the services sector fell to 52.1 points from 52.8 points last month. It was the lowest reading in 21 months. Analysts had expected the index to remain at the level of 52.8 points. "While the main picture shows the continuation of weak growth (about 0.3 percent for the quarter), is still clear that the economic recovery is fragile and do not expect any real acceleration", - said Rob Dobson, senior economist at HS Markit.

The composite index of the largest companies in the region Stoxx Europe 600 fell 0.6 percent. However, despite a significant increase in European stocks this week, market participants remain skeptical about the effectiveness of the ECB's stimulus measures, taking into account the slowdown in profit growth and recent economic data, which are not up to expectations. Previously, investors have ignored these concerns and focused on the policies of other central banks. Recall, the Fed decided to keep interest rates unchanged, while the Bank of Japan said it will adjust the purchase of assets to control bond yields.

The capitalization of Polymetal International Plc decreased by 8.6 per cent, triggering a decrease in shares of mining companies. The reason for this was the statements of the two investors that they plan to sell 13 million shares.

The cost of Moncler, the Italian manufacturer of luxury ski equipment, fell 2.6 percent, while the price of Scout24, a German operator of online ads fell by 4.1 per cent, which was due to the sale of shares by shareholders.

CaixaBank shares fell by 3.7 percent. The bank said it sold part of the shares to fund the takeover of Portuguese Banco BPI.

Securities of pharmaceutical company H. Lundbeck has decreased by 14 percent, the highest since December 2012. The company said that the first of three major studies on the treatment of Alzheimer's disease have not yielded results.

Shares of construction firms Persimmon Plc and Barratt Developments Plc climbed more than 2.2 percent after Liberum experts have raised estimates of the shares sector.

Shares of Sports Direct International rose 7 percent after reports that founder Mike Ashley will take over as chief executive officer.

Capitalization of Moleskin SpA jumped 13 percent after the Belgian D'Ieteren said it will make an offer to buy the Italian company.

At the moment:

FTSE 100 6901.26 -10.14 -0.15%

DAX -12.59 10661.59 -0.12%

CAC 40 4494.25 -15.57 -0.35%