European stocks slip as US credit downgrade, China data weigh

(Reuters) -European stocks dipped on Monday, snapping a five-week winning streak, as a surprise U.S. credit rating downgrade and weak economic data from China weighed on investor sentiment.

The pan-European STOXX 600 index was down 0.5% by 0725 GMT, retreating from seven-week highs touched on Friday.

U.S. stock index futures fell more than 1% and longer-dated U.S. Treasury yields rose after credit rating agency Moody’s cut its ratings on the country’s debt, citing concerns about the nation’s growing $36 trillion debt pile.

Euro zone government bond yields also edged higher. [GVD/EUR]

Meanwhile, luxury stocks declined after April retail sales data from China missed expectations. Hermes, Burberry (LON: BRBY ) and Moncler each dropped about 2% as European luxury firms count on China as a big market for their products.

Shares of BNP Paribas (OTC: BNPQY ) rose 2.4% after the French bank announced a share buyback plan worth 1.08 billion euros ($1.21 billion).

Volkswagen (ETR: VOWG_p ) tumbled 3.1% as the German automaker traded ex-dividend.

($1 = 0.8921 euros)