Europe midday: Energy sector weighs on stocks as investors digest data

At midday, the benchmark Stoxx Europe 600 index was down 0.7%, Germany’s DAX was 0.4% lower and France’s CAC 40 was off 0.9%.

"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 1.2% as metals prices dropped on concerns about a slowdown in demand from China, while the Stoxx 600 oil and gas index was 1.4% lower as oil prices fell.

West Texas Intermediate was down 2.9% to $40.68, while Brent crude was 1.8% weaker at $43.85 amid a stronger US dollar and concerns about a supply surplus. The dollar was up 0.3% against the euro, which has been under pressure since the European Central Bank signalled last week that it would do what it takes to boost inflation.

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).

Elsewhere, shares in Standard Chartered tumbled as the stock began trading ex-rights.

Figures released by Markit showed output in the Eurozone expanded at its fastest pace in over four years, although the terrorist attacks left their mark on French services sector activity.

Markit ‘s Eurozone composite purchasing managers’ index rose from 53.9 in October to 54.4 in November, according to the preliminary ‘flash’ reading, indicating the fastest rate of expansion of output in manufacturing and services since May 2011 and beating analysts’ expectations for a 54.0 reading.

Growth in Germany accelerated to a three-month high on the back of the biggest monthly improvement in new business for two years, but business activity in France rose at the slowest rate in three months.

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 £12bn increase to the defence budget.