French stocks led mild losses across European markets on Monday after a surprise ratings downgrade by Moody’s, while investors awaited December business activity readings for clues on the health of the euro zone economy.

France’s blue-chip CAC 40 dropped 0.3% after credit ratings agency Moody’s unexpectedly downgraded the country’s rating on Friday, bringing its rating to “Aa3” from “Aa2” with a stable outlook for future moves.

French banks including Societe Generale and Credit Agricole dipped about 0.3% each.

The pan-European STOXX 600 index was down 0.1% by 0813 GMT, with investors awaiting December flash PMIs for the euro zone and the UK.

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Porsche fell 1.3% after it warned it may write down the value of its stake in Volkswagen by up to 20 billion euros ($21 billion) and said it expects its group result after tax in 2024 to be “significantly negative.”

Entain fell 3.8% after Australia’s financial crime watchdog launched legal action against the Ladbrokes owner’s local unit, alleging breaches of anti-money laundering and counter-terrorism financing laws.