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By Carla Mozee and Victor Reklaitis, MarketWatch

Deutsche Bank: No further upside in 2016 for Stoxx Europe 600

European stocks closed lower Monday as shares in Bayer AG and Fiat Chrysler Automobiles NV struggled and Deutsche Bank sounded downbeat on the market.

The Stoxx Europe 600 fell 0.4% to end at 336.69. It had been down by as much as 0.8% just before data showed slowing in economic activity in the eurozone (http://www.marketwatch.com/story/eurozone-pmis-show-economic-activity-slowing-2016-05-23) in May. Markit said its eurozone composite purchasing managers index fell to 52.9. Economists surveyed by The Wall Street Journal last week had expected a rise to 53.2.

Major equity indexes erased losses and even briefly turned positive as the euro pulled back after that report. Euro strength can make prices for European exports more expensive for holders of other currencies to buy. The euro recently traded down 0.2% at $1.1195.

"Any indications that the [European Central Bank] is ready to up the ante in terms of the assets purchased as well as perhaps being more creative in respect of the variety of assets could well be the catalyst needed to push the single currency lower," said Brenda Kelly, head of analysts at London Capital Group, in a note.

With heavy exposure to exporters, Germany's DAX 30 had risen by as much as 0.6% as the euro slipped. But the index eventually turned negative, closing down 0.7% at 9,842.29.

At the bottom of the DAX were shares of Bayer AG (BAYN.XE). They closed down 5.7% after the chemicals giant said it made an all-cash offer to buy Monsanto Co. (MON) for $62 billion, or $122 a share (http://www.marketwatch.com/story/bayer-makes-62-billion-bid-to-take-over-monsanto-2016-05-23). The bid values Monsanto at 37% over the company's May 9 closing share price, the day before it made a written proposal to the U.S. company, Bayer said.

Read more:5 things to know about Bayer's record-breaking bid for Monsanto (http://www.marketwatch.com/story/bayers-62-billion-bid-for-monsanto-5-things-to-know-about-the-record-breaking-deal-2016-05-23)

Meanwhile, shares of Fiat Chrysler Automobiles NV (FCA.MI) finished down 4.4% after a report by German newspaper Bild (http://www.bild.de/bild-plus/geld/wirtschaft/abgas-skandal/auch-fiat-betruegt-mit-illegaler-software-45905214,var=a,view=conversionToLogin.bild.html) that German regulators suspect the auto maker of using illegal software to cheat on emissions tests. Fiat last week declined to meet with regulators to discuss the issue.

Fiat weighed on Italy's FTSE MIB , which ended down 2.7% to 17,325.08.

Also weighing on sentiment, Deutsche Bank strategists cut their year-end target for the Stoxx Europe 600 to 325, down from 380 earlier.

"The combination of weak global growth, Fed risk, a likely fade in China's growth rebound and fragilities in the U.S. high-yield credit market significantly undermines the upside case for European equities from current levels," said the strategists led by Sebastian Raedler in a note.

Indexes: Greece's Athex Composite finished up 1.5% at 649.10 after Greek lawmakers Sunday approved new tax and austerity reforms (http://www.marketwatch.com/story/greek-parliament-approves-austerity-vote-2016-05-22) in an effort to receive more bailout money from its country's creditors.

France's CAC 40 was off 0.7% at 4,325.10, and the U.K's FTSE 100 closed down 0.3% at 6,136.43.

The Stoxx 600 on Friday rose 1.2% (http://www.marketwatch.com/story/european-shares-rise-as-oil-prices-gain-2016-05-20), locking in a second straight weekly gain for the pan-European index.

Movers: Cie. Financière Richemont (CFR.EB) lost 3.5% in the wake of ratings downgrades to neutral at both Citi and J.P. Morgan. The moves come after the Cartier parent last week issued a gloomy outlook for the luxury market.

Ryanair Holdings PLC shares finished up 2.8% as the budget airline said yearly sales rose 18% and profit climbed 43% (http://www.marketwatch.com/story/ryanair-warns-profit-growth-will-slow-2016-05-23). But the company also said profit growth would slow this year.

(END) Dow Jones Newswires

May 23, 2016 12:20 ET (16:20 GMT)

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