European stocks experienced a slight downturn on Monday following an unexpected downgrade of France's credit rating by Moody's, which intensified concerns over the country's rising borrowing costs and cast doubt on the ability of the new government to address its worsening financial situation.
On a more positive note, data suggested a deceleration in the decline of eurozone business activity this month. The HCOB's preliminary composite eurozone Purchasing Managers' Index, compiled by S&P Global, rose to 49.5 in December, up from 48.3 in November, indicating a recovery.
Eurozone government bond yields remained stable after European Central Bank President Christine Lagarde conveyed that the most challenging period of high inflation is over and confirmed the bank's commitment to continue reducing its key interest rate.
The pan-European STOXX 600 index decreased by 0.2 percent to 515.27, after a previous fall of half a percent which ended a three-week winning streak. Meanwhile, Germany's DAX, France's CAC 40, and the U.K.'s FTSE 100 declined between 0.2 percent and 0.6 percent.
In corporate news, Novo Nordisk A/S saw a nearly 2 percent increase following the announcement of its plan to invest 8.5 billion Danish kroner to construct a new production facility in Odense, Denmark.
Swiss biopharma firm Basilea Pharmaceutica surged by 4 percent after striking an exclusive distribution and license agreement with Innoviva Specialty Therapeutics for the commercialization of its hospital antibiotic Zevtera (ceftobiprole) in the United States.
Porsche Automobil Holding SE fell almost 2 percent after pulling its 2024 profit guidance, citing potential non-cash impairment charges tied to its investment in Volkswagen AG and Porsche AG.
Vivendi, a mass-media conglomerate, soared 33 percent in Paris as its recently spun-off entities, Canal+, Havas, and Louis Hachette Group, commenced trading in London, Amsterdam, and Paris respectively.
Entain, the owner of Ladbrokes, plunged by 5 percent in London following the opening of civil penalty proceedings by Australia's anti-money laundering regulator over alleged breaches of the country’s anti-money laundering and counter-terrorism laws.
Additionally, Ricardo, a consulting firm specializing in strategic, environmental, and engineering services, gained about 1 percent after announcing that its Australian division has agreed to acquire 85 percent of E3 Advisory for roughly A$101.4 million, equivalent to 51.0 million pounds.
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