"Although we expect the Euro area economy to recover rapidly from the downturn, the scale of the output decline raises the risk of long-lasting 'scars' to the economy's productive capacity," Goldman Sachs analysts wrote in a note.
The trade-sensitive German DAX closed flat after data showed Europe's largest economy contracted by a record 9.7 per cent in the second quarter, but marked a minor upward revision from an earlier estimate of minus 10.1 per cent.An unexpected drop in US consumer confidence also weighed, as it pointed to a likely stalling in the world's largest economy.
Technology stocks were among the biggest gainers on the day. Aveva Group rose 7.2 per cent after announcing a deal to buy OSIsoft, a privately held maker of industrial software, for an enterprise value of US$5 billion.
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