European stocks started the New Year in the red despite a mostly positive session in Asia after a survey of Chinese manufacturing beat forecasts and North Korean leader Kim Jong Un said he is open to talks with South Korea.
The dollar weakened against most major currencies, including the euro and pound, weighing on sentiment.
European bond yields rose after ECB Executive Board member Benoit Coeure reportedly said there is "a reasonable chance" the ECB's 2.55 trillion euros stimulus program will not be extended again when it expires in September.
On the economic front, Eurozone manufacturing sector activity grew the most since the survey began in mid-1997, final data from IHS Markit showed today.
The factory PMI improved to 60.6 in December, in line with the flash estimate, from 60.1 in November.
Separately, the U.K. manufacturing activity growth eased more than expected in December, data published by IHS Markit showed.
The IHS Markit/Chartered Institute of Procurement & Supply Purchasing Managers' Index fell to 56.3 from November's 51-month high of 58.2.
The pan-European Stoxx Europe 600 index was down 0.35 percent at 387.83 in late opening deals and the U.K.'s FTSE 100 was losing 0.4 percent, while the German DAX and France's CAC 40 index were down 0.9 percent and 0.7 percent, respectively.
Ahold Delhaize fell around 1 percent. The company has commenced the 2 billion euros share buyback program announced on November 8, 2017 and expects to complete the program before the end of 2018.
Automakers were broadly lower as the euro got off to a strong start in 2018 on fears of ECB stimulus tapering. BMW lost 3 percent, Daimler dropped 1.7 percent, Volkswagen tumbled 2.4 percent and Renault slumped 2.7 percent.
Mining stocks fell despite a survey of Chinese manufacturing topping forecasts. BHP Billiton shed 1.6 percent, Antofagasta declined 1.7 percent and Glencore declined 0.8 percent.
British Airways owner IAG advanced 1.6 percent after announcing it would buy the insolvent Austrian holiday airline Niki for 20 million euros.
by RTT Staff Writer
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