BRUSSELS/FRANKFURT/PARIS (dpa-AFX) - The European markets ended Monday's session with modest losses. The markets climbed in early trade, but pared their gains around midday. The markets remained in the red during the second half of the day, after the lackluster open on Wall Street. Investors continue to monitor the political situation in Germany.
Concerns have subsided slightly after the Social Democrats agreed to hold talks with other parties in an effort to form a coalition government. Traders are hopeful that the talks will help the country to avoid snap elections.
The pan-European Stoxx Europe 600 index weakened by 0.38 percent. The Euro Stoxx 50 index of eurozone bluechip stocks decreased 0.47 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, lost 0.36 percent.
The DAX of Germany dropped 0.46 percent and the CAC 40 of France fell 0.56 percent. The FTSE 100 of the U.K. declined 0.35 percent and the SMI of Switzerland finished lower by 0.66 percent.
In Paris, Tech firm Ingenico jumped 3.80 percent after Morgan Stanley upgraded its rating on the stock.
In London, Aviva rallied 0.71 percent following reports that the insurer will likely spend £1 billion on a share buyback.
Consumer goods giant Unilever slid 0.48 percent. The company said it has started its search for a successor to Chief Executive Officer Paul Polman.
GlaxoSmithKline gained 1.89 percent after UBS upgraded its rating on the stock to 'Buy' from 'Neutral.'
Education group Pearson fell 2.05 percent after it agreed a deal to sell its language teaching unit Wall Street English for $300m (£225m).
Private bank Julius Baer Group tumbled 6.39 percent in Zurich after CEO Boris Collardi resigned from his position with immediate effect.
Supermarket firm Colruyt sank 4.94 percent in Brussels after Deutsche Bank cut its price target on the stock.
Italy's economic confidence weakened in November, survey data from the statistical office Istat showed Monday. The economic sentiment index fell to 108.8 in November from 109.1 in the previous month.
For the second consecutive month, the Commerce Department has released a report showing an unexpected jump in new home sales in the U.S. The report released by the Commerce Department on Monday showed new home sales surged up by 6.2 percent to an annual rate of 685,000 in October from the revised September rate of 645,000.
The notable increase surprised economists, who had expected new home sales to drop to a rate of 625,000 from the 667,000 originally reported for the previous month.
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