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MW: Europe stocks trade mostly lower; Vivendi gains after results
 
By Barbara Kollmeyer, MarketWatch
MADRID (MarketWatch) -- European markets started September on a mixed note Wednesday, with French and German stocks veering into the red, while entertainment giant Vivendi gained after reporting strong results.

The Stoxx Europe 600 index (ST:SXXP 251.92, +0.61, +0.24%) gave up opening gains to trade down 0.4% to 250.88 points, after finishing up 0.1% in the prior session.

Among regional markets in Europe, the U.K.'s benchmark FTSE 100 index (UK:UKX 5,247, +21.99, +0.42%) gained 0.3% to 5,239.17 points, while the French CAC 40 index (FR:PX1 3,496, +5.45, +0.16%) fell 0.2% to 3,483.56.

Germany's DAX 30 index (DX:DAX 5,905, -19.79, -0.33%) was seeing the biggest losses, down 0.5% to 5,894.91. Sentiment was soured by disappointing economic data.

Retail sales in Germany fell 0.3% in July from the prior month, compared to expectations of a 0.5% rise. "July retail sales did not bring further evidence of a private consumption upswing," said Carsten Brzeski, economist at ING Bank, in a note to clients.

In Paris, shares of Vivendi (VIVDY 23.15, +0.31, +1.36%) (FR:VIV 18.98, +0.55, +2.99%) rose 3.4% after the group reported adjusted second-quarter earnings that beat forecasts, as revenue increased 6.2%. Its net profit fell 3.5% in the period, though.

Chief Executive Jean-Bernard Levy attributed the results to "excellent" performance at Vivendi's recent acquisitions: GVT, Activision Blizzard and SFR. And he said Vivendi lifted the earnings estimates for the three firms.

Shares of Havas (FR:HAV 3.44, -0.18, -4.95%) fell nearly 5% after the French-based communication and consulting services provider reported weak organic revenue growth. Total organic growth edged up 2% in the second quarter, while organic growth in Europe dropped 2.2% hurt by the loss of the Carrefour account last year.

Financials in Europe were largely weaker, while miners gained.

Shares of mining giant Rio Tinto (UK:RIO 3,348, +48.00, +1.46%) rose 1.4% and those of Fresnillo PLC (UK:FRES 1,125, +35.00, +3.21%) advanced 3.4%.

Overnight, China reported a rebound in manufacturing activity in August while Australia announced better-than-expected second-quarter growth. The data served to soothe some jitters over the global economy and boost Asian markets overall.

U.S. stock markets on Tuesday closed out the worst August performance since 2001, weighed down by economic worries.
Source