Morning MoneyBeat Europe: Stocks Weighed by Falls in Commodity Prices

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European stocks fell back Monday, weighed by falling commodities prices and signs the terror attacks on Paris had hit economic activity.

Brent crude oil was down 2.1% at $43.74 a barrel amid concerns about oversupply, putting pressure on shares in energy companies. Other commodities stocks were under pressure too, with three-month copper prices falling to a six-and-a-half year low in early trading. The FTSE 350 mining index was down 3.1%.

Adding to this was the news that France’s economy slowed following the Nov. 13 terror attacks in Paris and a subsequent tightening of security around the country, but it continued to grow, according to surveys released Monday.

The surveys are the first national measure of economic activity released since the attacks, and the bulk of responses from purchasing managers at manufacturers and service providers came in the days after the assaults at the Bataclan concert hall and other locations claimed 130 lives in the French capital. Markit said responses were received between Nov 12 and Nov. 20.

Elsewhere, the focus remains on the U.S. Federal Reserve's decision on whether to increase interest rates at its meeting in December. Federal Reserve Bank of San Francisco President John Williams said there is a strong case for the Fed to begin raising short-term interest rates.

"Assuming that we continue to get good data on the economy, continue to get signs that we're moving closer to achieving our goals and gaining confidence in...getting back to 2% inflation over the next couple years...if that continues to happen, there's a strong case to be made in December to raise rates," Mr. Williams said.

That said, volumes are expected to be low this week, with trading in the U.S. cut short with partial closes on Thursday and Friday due to the Thanksgiving holiday.

Watch for: U.S. PMI Manufacturing data and U.S. existing home sales.

Market Snapshot: FTSE 100 down 0.47%, CAC 40 down 0.65% and DAX down 0.20%. Nikkei closed Monday. Brent crude down 2.10% at $43.72. Gold down 0.57% at $1072.40. EUR/USD at $1.0631. Ten-year Treasury yield higher at 2.279%, Bund yield higher at 0.502%, Gilt yield higher at 1.905%.

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