European Equities End Strong August With Decline

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European shares closed lower on Monday in the last session of the month, while trading volume was thin as U.K. markets were closed for a public holiday.

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The Stoxx Europe 600 Index lost 0.6%, after rising as much as 0.7% earlier in the session. For the month it remains a decent performance of a rise of 2.9%, the biggest August gain since the financial crisis in 2009, helped by positive news on the vaccine front and as governments in the region ruled out new lockdowns.

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Stocks had climbed in early trading as sentiment was boosted by figures showing Chinese economic activity rebounding further this month, with a gauge of the services industry at the strongest level since early 2018. But the mood started to sour later as U.S. markets only hovered below their all-time highs and data showed consumer prices are sliding in Europe, with Germany, Italy and Spain all reporting negative inflation rates in August.

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Europes utility sector featured among the top gainers on Monday, with shares in French water management company Suez SA jumping as much as 20% after Veolia Environnement SA offered 2.9 billion euros ($3.5 billion) for a 29.9% stake in the company.

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