Europe open: Resources and energy stocks lead equity markets lower

European stocks fell in early trade, with natural resources and energy under the cosh as metals and oil prices declined.

At 0845 GMT, the benchmark Stoxx Europe 600 index was down 0.7%, Germany’s DAX was 0.5% lower and France’s CAC 40 was off 0.8%.

“This week commences on a soft note for European indices following a good month that saw the best weekly performance from global stocks in just over a month,” said Simon Smith, chief economist at FXPro.

“Increased security tensions across Europe and a continued downward spiral of commodity prices means…sentiment is likely to be tested further with a very quiet week ahead on both the economic and corporate data front, culminating in the-two day Thanksgiving celebrations in the US.“

The Stoxx 600 basic resources index was down 2.5% as metals prices slumped on concerns about a slowdown in demand from China, while the Stoxx 600 oil and gas index was down 1.5% as oil prices fell.

West Texas Intermediate was 2.9% lower at $40.69, while Brent crude was 1.8% weaker at $43.88 amid a stronger US dollar and concerns about a supply surplus.

Credit Suisse slid after the bank said it has raised 1.32bn Swiss francs from the first phase of a CHF6bn capital increase.

AstraZeneca nudged lower after announcing that it has sold the US rights to Crohn's disease medicine Entocort to Perrigo Company for $380m (£250.8m).

Aside from corporate and macroeconomic news flow, investors were also keeping an eye on developments in Europe after Belgian police made 16 arrests in late-night raids related to the Paris terrorist attacks, but failed to find a prime suspect.

Brussels was on lockdown for the third day in a row on Monday due to a “serious and imminent” threat of attack.

Meanwhile, in the UK, the government said it will make the case to parliament to join air strikes against the Islamic State in Syria, as prime minister David Cameron prepared to announce a £12 billion increase to the defence budget.

Eurozone PMI surveys are due at 0900 GMT. In the US, Markit’s manufacturing PMI is at 1445 GMT, while existing home sales are at 1500 GMT.