(fxcue news) - European stocks were broadly lower in cautious trade on Monday as investors reacted to weak business activity data and the latest political developments in the region. Eurozone business activity contracted more than expected in September, with the corresponding PMI falling to 48.9 from 51.0 as both services and manufacturing sectors weakened. Similarly, growth softened across U.K. businesses in September. In political news, German Chancellor Olaf Scholz's Social Democratic Party (SPD) has narrowly beaten the far-right Alternative for Germany (AfD) in an election in the east German state of Brandenburg, according to official results released this morning. In France, Prime Minister Michel Barnier said his new government could increase taxes for big business and the wealthiest to help tackle the budget deficit. Elsewhere in the U.K., Finance Minister Rachel Reeves said there would be no return to austerity or widespread cuts despite financial challenges. The pan European STOXX 600 was marginally lower at 514.06 after falling 1.4 percent on Friday. The German DAX edged up 0.2 percent, while France's CAC 40 dropped 0.6 percent and the U.K.'s FTSE 100 was little changed. In corporate news, UBS Group shares fell about 1 percent amid reports that the Swiss financial market regulator FINMA is probing Credit Suisse's collapse ahead of its merger with UBS. Germany's Siemens edged up slightly as it announced the intention to carve out its eMobility business. Scout24 SE, a provider of digital services to the real estate sector, rallied 2 percent after announcing a share buyback of up to 150 million euros. The share repurchase is expected to start in the coming weeks and to end in 2026. Commerzbank slumped 4.6 percent after the German government announced that it would hold on to its 12 percent stake in the lender. The government "will not, until further notice, sell any additional shares," the agency responsible for any sales said in a statement Friday. "This also includes sales related to any share buybacks." AstraZeneca fell 1.4 percent after the British drug maker said the overall survival in the TROPION-Breast01 Phase III trial of datopotamab deruxtecan did not achieve statistical significance compared with chemotherapy. Rightmove rallied 2.1 percent after Australia's REA Group sweetened its takeover offer for the British property portal.