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European stocks lower; Carillion collapses; Metso down 10%

Matt Cardy | Getty Images. European stocks were lower on Monday morning as stocks paused for breath after two weeks of strong gains.

European shares were lower Monday morning as stocks paused for breath after two weeks of strong gains. The pan-European Stoxx 600 (STOXX: .STOXX) was 0.23 percent lower with sectors and major indexes trading in negative territory. Banking stocks were among the worst performers with U.K. large cap banks under particular pressure. Standard Chartered was down by 1.7 percent, HSBC (London Stock Exchange: HSBA-GB) was down by 1 percent and RBS fell 0.6 percent in late morning deals. This is after the British construction firm Carillion (London Stock Exchange: CLLN-GB) entered into liquidation. Both HSBC and RBS are among its top creditors. The company's shares were suspended from trading, but its rivals rose on the news, with Serco up 5 percent and Interserve up 1.5 percent. The Finish mining firm Metso (Helsinki Stock Exchange: MEO-FI) dropped to the bottom of the European benchmark, down by about 10 percent. The company reported lower-than-expected sales and profits. On the other hand, Azimut led the gains, up by 9 percent, after announcing it was doubling its dividend. Vivendi was among the top performing stocks too following a rating upgrade. In Asia, stocks closed higher but Chinese bonds and equities stumbled after the government announced new steps on banking oversight in an "arduous" fight on financial risks, Reuters reported. Markets in U.S. will be closed on Monday for Martin Luther King, Jr day. The dollar was under pressure, down by 0.28 percent, against a basket of foreign currencies.Corporate news Renault (Euronext Paris: RNO-FR) reported Monday an increase in global sales for 2017 and said it is expecting further growth in 2018, Reuters reported. In other news, Rolls-Royce has said it is reviewing its ownership of L'Orange, which could lead to a sale of its German based subsidiary, the Financial Times reported. Over the weekend news emerged that BNP Paribas (Euronext Paris: BNP-FR) was making plans to benefit from the U.K.'s decision to leave the European Union. The French bank has prepared plans to attract mid-sized British companies, the Financial Times reported. European shares were lower Monday morning as stocks paused for breath after two weeks of strong gains. The pan-European Stoxx 600 (STOXX: .STOXX) was 0.23 percent lower with sectors and major indexes trading in negative territory. Banking stocks were among the worst performers with U.K. large cap banks under particular pressure. Standard Chartered was down by 1.7 percent, HSBC (London Stock Exchange: HSBA-GB) was down by 1 percent and RBS fell 0.6 percent in late morning deals. This is after the British construction firm Carillion (London Stock Exchange: CLLN-GB) entered into liquidation. Both HSBC and RBS are among its top creditors. The company's shares were suspended from trading, but its rivals rose on the news, with Serco up 5 percent and Interserve up 1.5 percent. The Finish mining firm Metso (Helsinki Stock Exchange: MEO-FI) dropped to the bottom of the European benchmark, down by about 10 percent. The company reported lower-than-expected sales and profits. On the other hand, Azimut led the gains, up by 9 percent, after announcing it was doubling its dividend. Vivendi was among the top performing stocks too following a rating upgrade. In Asia, stocks closed higher but Chinese bonds and equities stumbled after the government announced new steps on banking oversight in an "arduous" fight on financial risks, Reuters reported. Markets in U.S. will be closed on Monday for Martin Luther King, Jr day. The dollar was under pressure, down by 0.28 percent, against a basket of foreign currencies. Corporate news Renault (Euronext Paris: RNO-FR) reported Monday an increase in global sales for 2017 and said it is expecting further growth in 2018, Reuters reported. In other news, Rolls-Royce has said it is reviewing its ownership of L'Orange, which could lead to a sale of its German based subsidiary, the Financial Times reported. Over the weekend news emerged that BNP Paribas (Euronext Paris: BNP-FR) was making plans to benefit from the U.K.'s decision to leave the European Union. The French bank has prepared plans to attract mid-sized British companies, the Financial Times reported.

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