European markets

European stocks ended relatively flat Monday as shares held tight ranges as finance ministers prepared for a meeting to discuss the sovereign-debt crisis. The Stoxx Europe 600 index edged up 0.1% to finish at 284.06. The U.K.'s FTSE 100 index slipped 0.3% to close at 5,985.70 its lowest close since Jan. 10 and a third session of losses. The French CAC 40 lost 0.2% to close at 3,975.41 and the German DAX 30 index rose less than 0.1% to finish at 7,078.06. Smiths grabbed top spot on the blue-chip leaderboard, up 7.7 percent, after the engineering firm rebuffed a 2.45 billion pounds ($3.88 billion) bid for its medical unit. Artificial knee and hip maker Smith & Nephew rose 3.5 percent following a weekend report Johnson & Johnson was considering a fresh takeover approach worth at least 800 pence a share, valuing it at 7.1 billion pounds.Trading was lacklustre with U.S. markets closed for the Martin Luther King Jr Holiday.

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Vodafone Group added 1.8 percent as investors awaited a deal for the British mobile operator to dispose of its 44 percent stake in French mobile operator SFR for between 7 billion euros ($9.32 billion) and 8 billion. Banks fell as investors locked in profits from a sector that has enjoyed a good start to 2011 despite Europe's sovereign debt problems lingering in the background. Miners remained hamstrung by concerns over demand from China after the world's biggest consumer of raw materials announced it was raising banks' required reserves by another 50 basis points on Friday, a further sign of monetary policy tightening. ARM Holdings fell 3 percent, with traders citing concerns surrounding customer Apple's Chief Executive Steve Jobs. He is taking medical leave two years after a six-month break for a liver transplant. Autonomy shed 5.1 percent, the worst performing FTSE 100 stock, after Standard and Poor's equity research said a lack of a positive pre-announcement does not bode well for the British software firm's Q4 results. Engineer Weir Group shed 2.8 percent, with traders citing talk of a potential bid for Swiss rival Sulzer.

Asian markets

Chinese shares slumped to lead Asian markets lower Monday as concerns that Beijing may further tighten monetary policy to restrict bank lending and curb inflation triggered a selloff in real estate and financial stocks. The fall in Shanghai and elsewhere came after the People's Bank of China Friday raised banks required reserve ratio for the seventh time since the beginning of 2009 by half a percentage point. The Shanghai Composite index skidded 3% for its biggest percentage fall since Nov. 16. The tumble caused a 1.6% fall in the Hang Seng China Enterprises index, an index of several large-capital Chinese stocks traded in Hong Kong. The benchmark Hang Seng index slid 0.5%. Japan's Nikkei Stock Average ended little changed, South Korea's Kospi slipped 0.4% and Taiwan's Taiex gave up 0.5%.

Leading the decliners on mainland bourses, shares of Poly Real Estate Group Co. slumped 8.7% and China Vanke Co. shed 7%. Qingdao Haier Co. was down 9%, China Oilfield Services fell 8% and Cosco Shipping Co. was down 6.3%. Concerns about further monetary tightening measures from China ahead of inflation data later this week weighed on investor sentiment. China Everbright Bank shed 5.3%, China Construction Bank lost 4.1% and Industrial and Commercial Bank of China fell 2.8%. In Hong Kong, the three banks fell 1.9%, 2.1% and 1.3%, respectively. In Tokyo, construction-machinery makers linked to Chinese demand were also dragged down by Beijing's reserve-requirement ratio hike Friday. Komatsu fell 1% and Hitachi Construction Machinery slid 1.3%.

Base metals

Base metals closed mostly lower on the London Metal Exchange Monday as the euro fell against the dollar and European stocks declined. Sentiment also remained downbeat following another increase in China's reserve requirement ratio Friday, with market players fearing further measures to tighten the country's buoyant economy. LME three-month copper closed the day down 0.3% at $9,625 a metric ton. The metal had been weighed down by a softer euro, making the dollar-denominated commodities appear more expensive to non-U.S. currency holders. Turnover across the metals was lighter as well, with U.S. markets closed. Tin, nevertheless, managed to outperform its peers Monday, supported by supply fears. The metal traded up 0.3% to close the day at $26,925/ton.