LONDON: European stocks ended flat on Monday, held down by concerns over the Ukraine crisis and by weak manufacturing data, and the ruble and euro were weak.
The euro was weak against the US currency before Thursday's European Central Bank (ECB) meeting when policymakers will consider their next move to counter the threat of deflation in the eurozone.
The single currency also fell further against sterling, but edged up against the yen. US markets were closed for a holiday.
In afternoon deals, leading European markets were down but slightly firmer than in initial trading. By the close of trading, Frankfurt's main DAX index edging up 0.09 percent to 9,479.03 points.
London's benchmark FTSE 100 gained 0.08 percent, ending on 6,825.31 points, while in Paris the CAC 40 lost 0.03 percent to 4,379.73 points.
The ruble slumped to a new record low of 37.3910 to the US dollar on Monday, after EU Commission head Jose Manual Barroso had warned on Saturday that the crisis was reaching "the point of no return" amid fighting in Ukraine.
Eurozone manufacturing sector falters:
Investor sentiment was also hurt by news of a sharper-than-expected slowdown in eurozone manufacturing activity.
Markit's purchasing managers' index (PMI) measure of output in the eurozone's manufacturing sector fell to a figure of 50.7 in August, according to the final estimate.
That was still above the 50-point signalling growth or downturn. It compared with the prior flash reading of 50.8, and a figure of 51.8 in July.
"Although readings of above 50 are generally seen as positive, this figure provides further ammunition for those criticising (ECB chief) Mario Draghi for failing to announce proper quantitative easing measures for the eurozone," said ETX Capital analyst Daniel Sugarman.
"However at the Jackson Hole economic symposium a week ago Mr Draghi hinted at a preparedness to take further steps should the eurozone economy continue to worsen."
In addition, the Italian manufacturing sector joined the equivalent figure in France in registering a contraction, while German factories experienced their most sluggish month since September 2013.
In Zurich, shares in pharmaceutical group Novartis rose 4.31 percent to 85.90 Swiss francs on trial data showing the potential effectiveness of a new treatment LCZ696 for heart conditions.
In Paris, shares in telecom group Iliad, owner of low-cost operator Free, fell on unexpectedly weak six-month results but also on the group's repeated determination to press on with a bid for US operator T-Mobile US.
Iliad has offered $15.0 (11.2 billion euros) in cash for 56.6 percent of the US group. Iliad said on Monday it may raise 2.0 billion euros in capital to help finance the bid, which could involve partners.
Close eye on geopolitics:
"Geopolitical risk will likely continue to overshadow the market in the days ahead, especially given the one-week deadline set by the EU for Russia to scale back operations in Ukraine or face more sanctions," Credit Agricole analysts said.
The single currency was bumping along at around the lowest levels for 12 months, at $1.3139, the same as late on Friday.
It fell against sterling which rose to 79.04 pence to the euro, having reached 78.91 pence early in the day, the highest sterling level for five and a half weeks.
Sterling was also strong against the dollar, at $1.6621. The yen was weaker, at 137.01 to the euro from 136.72, and at 104.28 to the dollar from 104.06.
At Spreadex traders, analyst Le Mumford said that the euro was at the lowest level for a year before the meeting of the ECB on Thursday.
But the Swiss franc eased slightly against the euro to 1.2073 francs to the dollar having reached 0.9196 earlier, the lowest level since the middle of February.
The yuan closed at 6.1433 to the dollar from 6.1436 on Friday. The price of gold closed at $1,287.25 an ounce, from $1,285.75 on Friday on the London Bullion Market.
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