(Reuters) – French stocks led slight losses in European markets on Monday after a surprise credit rating downgrade by Moody's (NYSE:), while investors awaited December business activity readings for clues to the health of the euro zone economy.
France's leading stock fell 0.3% after the credit rating agency Moody's unexpectedly lowered the country's rating on Friday, bringing its rating to “Aa3” from “Aa2” with a stable outlook for future movements.
French bank stocks including Société Générale (OTC:) and Credit Agricole (OTC:) fell about 0.3% each.
By 0813 GMT, the European index was down 0.1%, with investors awaiting the release of preliminary purchasing managers' indexes for the euro zone and the United Kingdom in December.
Porsche shares fell 1.3% after it warned that it may write down the value of its stake in Volkswagen (ETR:) by up to 20 billion euros ($21 billion) and said it expects its group’s after-tax results in 2024 to be “significantly negative.”
Entain shares fell 3.8% after the Australian Financial Crimes Watchdog took legal action against Entain Ladbrokes (LON:) the local unit of the owner, alleging violations of anti-money laundering and counter-terrorism financing laws.
