European equity indices closed mixed on Monday after paring earlier losses and after US stock markets gained. Bank shares and miners declined as a forecast for Chinese growth was lowered. Technology, telecom and pharmaceuticals advanced.
The Chinese Academy of Social Sciences on Monday forecast that growth in the world’s second-largest economy will slow again next year to 6.5%, the slowest pace in more than 25 years and down from around 6.7% predicted for this year as monetary policy is expected to tighten to prevent asset bubbles, Reuters reported.
German shares outperformed after the German Ifo Institute’s business climate index climbed to an 11-month high of 111.0 in December. The assessment of the current situation also rose and a gauge of near-term expectations also improved, the institute said on Monday, suggesting accelerating economic growth in Q4.
By Bryan Smith