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DAX leads European stocks lower, VW & China news weigh

FXStreet (Mumbai) - European stocks kept losses following a negative weekly start, as the focus shifted back on the Volkswagen scandal while traders digested Sunday’s vote in Catalonia.

Moreover, markets turned risk-averse after China slowdown fears returned on the release of the latest China industrial data, which showed that the Chinese companies combined profits slumped 8.8% in August against a 2.9% drop in July, hitting fresh four year lows.

Auto sector stocks drive DAX lower

The recent Volkswagen emissions-scandal is weighing once again on market sentiments as the Federal Motor Transport Authority (FMTA) has set October 7 as a deadline for Volkswagen to come up with a plan for fixing emission-manipulated cars. Hence, the news has dragged all the major auto stocks lower. Germany’s the DAX 30 now declines -0.54% to 9,634.

While the UK FTSE 100 index drops -0.32% to 6,091. Among the other indices, the French CAC 40 index loses -0.50% to 4,458, while the pan-European Euro Stoxx 50 index slides -0.29% to 3,104.

However, ditching its European counterparts, Spain’s IBEX 35 advances 0.45% to 9,562, with markets cheering pro-independence party’s victory in Catalonia's parliament in a regional election on Sunday.

Gold offered below 100-DMA

The Asian markets responded to the upward revision of the US second quarter GDP by offering Gold just below the 100-DMA located at USD 1149/Oz levels.
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