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European markets close mixed; mining stocks fall 2.6% after China announces growth target

Holly Ellyatt

This is CNBC's live blog covering European markets.

European stock markets closed flat Monday, after paring modest early-session gains.

Markets had a positive opening following last week's boost before slipping into the red.

The pan-European Stoxx 600 provisionally closed down 0.03%. Mining stocks dropped 2.6% to lead losses, with Anglo American and Rio Tinto among the worst performers.

Citi analysts said China's announcement of a growth target of 5% this year after it fell short of its "around 5.5%" target in 2022, could "feel disappointing to some investors."

European markets


Sector gains on Monday were led by travel and leisure stocks, which were up 1.8%.

Stocks in Asia-Pacific were mixed as investors further digested comments on the Chinese economy outlined in its parliamentary sessions.

U.S. stocks were higher in early trade as Wall Street looked ahead to a week filled with economic data and the latest commentary from the Federal Reserve.

There will be congressional testimony Tuesday and Wednesday from Fed chair Jerome Powell that will give investors a better idea of what the central bank is thinking about inflation and its rate-hiking campaign.

The U.S. non-farm payroll will be a key focus this week, with expectations to see cooled hiring, prompting the Federal Reserve to maintain a smaller rate hike pace.

Europe markets close flat

The pan-European Stoxx 600 closed 0.02% lower Monday, with the major indexes a mixed bag.

The U.K.'s FTSE 100 fell 0.2%, as Germany's DAX index finished 0.5% higher and France's CAC 40 climbed 0.3%.

Among sectors, mining stocks dropped 2.7%, which analysts linked to a growth forecast of "around 5%" announced by commodity-hungry China.

Several other sectors remained in the green, with travel and leisure stocks up 1.9%.

— Jenni Reid

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U.S. stocks open slightly higher

The major averages opened slightly higher to start a big week for economic data.

The S&P 500 added 0.25%, while the Nasdaq Composite jumped 0.4%. The Dow Jones Industrial Average rose just 46 points, or 0.14%.

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European mining stocks down 2.4% after China growth target

Mining stocks dropped 2.4% in morning trade, bucking the broadly positive trend across European markets after the announcement of a modest Chinese growth target.

China set a growth expectation of "around 5%" for 2023, according to a government report released Sunday, with the consumer price index aiming to grow by 3%.

The news prompted base metal prices to slide after hopes the industry would have a solid demand rebound in 2023 following China's reopening. Iron ore, zinc, nickel, aluminium and lead all lost momentum Monday morning, according to the London Metal Exchange.

— Hannah Ward-Glenton

Major shareholder sells its Credit Suisse stake

Major Credit Suisse shareholder Harris Associates sold its stake in the Swiss Bank in recent months, as confirmed by Reuters.

The U.S. investment manager's deputy chair and chief investment officer David Herro did not give a reason for selling the stake, but previously expressed frustration with Credit Suisse's performance.

"We have lots of other options to invest," he told the Financial Times. "Why go for something that is burning capital when the rest of the sector is now generating it?" he added.

Harris Associates is believed to have owned as much as 10% of Credit Suisse's stock last year, but started to cut its exposure to the bank in October, according to the FT.

The beleaguered bank has seen an exodus of shareholders following a string of scandals and annual losses described as "completely unacceptable" by the bank's CEO Ulrich Koerner.

CNBC has contacted Harris Associates for comment.

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UBS raises its China growth forecast for 2023 from 4.9% to 5.4%

UBS raised its growth forecast for China in 2023 from 4.9% to 5.4%, the firm said in a Monday report.

"Economic re-opening is proceeding better than we had expected earlier – the feared "second-wave" of Covid did not materialize and there was little sign of supply disruptions," it said, adding that the global economy has been more resilient than earlier predicted.

UBS also raised its 2024 growth forecast for the country to 5.2% from a previous estimate of 4.8%, while lowering its inflation forecast for 2023 from 3% to 2.5%.

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European markets: Here are the opening calls

European markets are expected to open higher Thursday.

The U.K.'s FTSE 100 index is expected to open 14 points higher at 7,626, Germany's DAX 13 points higher at 15,837, France's CAC up 4 points at 7,253 and Italy's FTSE MIB 17 points higher at 26,579, according to data from IG.

Earnings come from Tate & Lyle, Manchester Utd, Johnson Matthey, United Utilities and Pets at Home. Data releases include a detailed breakdown of Germany's first-quarter gross domestic product.

— Holly Ellyatt