* STOXX 600 ends 1.1 pct decrease

* UniCredit drags banks down as money name nears

* M&A chat lifts Vodafone, Atkins WS

* Commodities amongst high fallers (ADVISORY- Follow European and UK inventory markets in actual time on the Reuters Live Markets weblog on Eikon – see cpurl://apps.cp./cms/?pageId=livemarkets) Adds particulars, updates costs)

By Danilo Masoni

MILAN, Jan 30 European shares ended decrease on Monday, weighed down by losses amongst commodities-related shares and financials, although hypothesis about merger and acquisition exercise supplied some assist with Vodafone among the many main gainers.

Vodafone rose 1.3 % after the British cellphone group stated it was in talks to merge its Indian unit with Idea in an all-share deal that would assist counter fierce competitors.

“Something had to be done and this merger might be the way to strengthen Vodafone’s hand in the Indian price war,” stated ETX Capital analyst Neil Wilson.

However, the STOXX 600 closed 1.1 % decrease, the largest one-day drop since November, with the temper amongst traders dampened after U.S President Donald Trump launched a journey ban, growing considerations in regards to the influence of his insurance policies on international commerce and the financial system.

But regardless of these losses, the pan-European index continues to be up 0.3 % thus far in January and set for its third straight month of features.

The surge seen in current weeks had mirrored optimism over Trump’s plans to spice up the financial system with tax cuts and deregulation, in addition to a very good begin to the earnings season and rising merger hypothesis.

On Monday M&A chat lifted shares in British engineering agency Atkins WS, which jumped 6 % on a report of a $4 billion merger method from U.S. firm CH2M.

But the M&A-related optimism was greater than offset by weak point amongst oil and fuel and mining shares, each down greater than 2 %, after crude costs fell and copper eased under eight-week peaks. (MET/L]

Oil majors BP, Total and Royal Dutch Shell had been down between 1.1 and a couple of.2 %, whereas oil merchandise storage firm Vopak and refiner Neste , down 7 % and a couple of % respectively, had been each hit by a Goldman Sachs downgrade to promote.

But an improve to purchase from UBS lifted shares in Germany’s Software, which surged 5.5 % to high gainers on the STOXX.

Banks had been dragged down by a 5.5 % drop in UniCredit. Italy’s greatest financial institution stated its end-2016 capital ratios wouldn’t meet necessities set by the European Central Bank because it prepares to launch a 13-billion euro rights challenge to spice up its monetary power.

UniCredit put stress on the FTSE MIB, down 3 %, making the Italian blue chip index the largest faller amongst main nationwide indexes in Europe. Italian banks fell almost 4 % to a six-week low. (Additional reporting by Atul Prakash; Editing by Gareth Jones and Pritha Sarkar)

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