Europe open: Stocks fall after weak German data

European stocks fell in early trade following much weaker-than-expected German data and amid declining oil prices.

At 0850 BST, the benchmark Stoxx Europe 600 index was down 1.5% and France’s CAC 40 was 1.9% weaker, but Germany’s DAX suffered the heaviest losses, down 2.2% after data from the Deutsche Bundesbank showed German factory orders unexpectedly dropped in February.

Factory orders fell 1.2% on the month, marking their lowest reading in six months and missing economists’ expectations for a 0.3% increase.

Still, the January reading was revised up to show a 0.5% rise from a 0.1% fall.

On the year, factory orders were up 0.5%, falling short of expectations of a 2.2% increase.

Pantheon Macroeconomics said the upward revision to last month’s data compensates slightly for the poor headline, but this was a weak report.

“The main hit came from a 7.3% month-to-month plunge in consumer goods orders, almost erasing the surge in the previous two months. Capital goods orders fell 2.1% month-to-month, while intermediate goods orders increased 1.7%.

“New orders are very volatile on a monthly basis, and we expect a rebound next month, but manufacturing in Germany remains weak overall,” Pantheon said.

Meanwhile, oil prices were in the red amid ongoing supply glut concerns as hopes of a coordinated freeze agreement at the upcoming OPEC meeting in Doha fade. West Texas Intermediate was down 1% to $35.33 a barrel and Brent crude was 0.7% lower at $37.42.

Metals prices were also under pressure, pushing the Stoxx 600 basic resources index down 3.1%.

In corporate news, Peugeot Citroen skidded after its chief executive officer outlined plans to return to consistent sales growth.

French hotels group Accor was also on the back foot after announcing the acquisition of UK home rental company Onefinestay for €148m (£118m).