European stocks have been muted because of the weak economic outlook in Germany.
European stocks dropped on Monday due to concerns about Germany's industrial and service sectors, and the decline in optimism from China's manufacturing output and retails sales data.
Germany’s Economy Ministry said the country's industrial activities had fallen, and recent data suggest a weakening of the service sector, which has led to a 1% decrease in the Frankfurt DAX index (GDAXI).
"The German manufacturing sector has been contracting throughout 2019, but what matters is the talk about slowing growth in the service sector, Germany is a European powerhouse and if their economy is not in a good shape that is going to spell bad news for everyone . (European countries)," said David Madden, market analyst at CMC Markets.
European stocks were unlikely to melt in May as trade tensions worsened, but in the hope of losser monetary policy from major banks, they recovered. Positive developments in commerce are a key factor determining the continuation of the ascent trend.