Investing.com – European stock markets were down sharply on Thursday, after data showed that manufacturing activity in the euro zone fell to a two-year low in August, while a disappointing Spanish bond auction also weighed.
During European morning trade, the EURO STOXX 50 dropped 1.4% France’s CAC 40 sank 1.35%, while Germany’s DAX 30 tumbled 2.1%.
Earlier Thursday, data showed that the euro zone’s manufacturing purchasing managers’ index fell to a two-year low of 49.0 in August, down from a preliminary reading of 49.7.
Germany’s manufacturing PMI slowed to its lowest level since September 2009, slumping to 50.9, well below an initial estimate of 52.0. National PMI’s also signaled contractions in Ireland, France, Italy, Spain and Greece.
Meanwhile, shares in the financial sector were lower after an auction of Spanish government debt met with tepid demand earlier.
Spain’s biggest lender Banco Santander saw shares drop 1.55%, rival BBVA retreated 1.25%, while financial heavyweights Deutsche Bank and BNP Paribas slumped 2.65% and 2.1% respectively.
French media conglomerate Lagardere tumbled 8.8% after lowering its full-year core operating profit outlook by as much as 7% because of problems at its sports business division.
Elsewhere, in London, the commodity-heavy FTSE 100 slipped 0.65% as miners led losses, amid the uncertain global economic outlook. Mining giants BHP Billiton and Rio Tinto saw shares drop 2.75% and 1.7% respectively, while copper producer Xstrata slumped 3.3%.
However, shares in the financial sector performed strongly after the Financial Times reported that the U.K. government would not implement major banking reforms until after the 2015 election.
Royal Bank of Scotland shares rallied 7.8%, Lloyds Banking Group jumped 4.75%, while Barclays gained 5.1%.
The outlook for U.S. equity markets was upbeat ahead of earnings reports from the largest U.S. tax preparation company H&R Block.
The Dow Jones Industrial Average futures pointed to a drop of 0.45%, the S&P 500 futures indicated a 0.55% decline, while the Nasdaq 100 futures pointed to a loss of 0.4%.
Later in the day, the U.S. was to publish its closely watched weekly report on initial jobless claims, while the U.S. Institute of Supply Management was to produce data on manufacturing growth.
During European morning trade, the EURO STOXX 50 dropped 1.4% France’s CAC 40 sank 1.35%, while Germany’s DAX 30 tumbled 2.1%.
Earlier Thursday, data showed that the euro zone’s manufacturing purchasing managers’ index fell to a two-year low of 49.0 in August, down from a preliminary reading of 49.7.
Germany’s manufacturing PMI slowed to its lowest level since September 2009, slumping to 50.9, well below an initial estimate of 52.0. National PMI’s also signaled contractions in Ireland, France, Italy, Spain and Greece.
Meanwhile, shares in the financial sector were lower after an auction of Spanish government debt met with tepid demand earlier.
Spain’s biggest lender Banco Santander saw shares drop 1.55%, rival BBVA retreated 1.25%, while financial heavyweights Deutsche Bank and BNP Paribas slumped 2.65% and 2.1% respectively.
French media conglomerate Lagardere tumbled 8.8% after lowering its full-year core operating profit outlook by as much as 7% because of problems at its sports business division.
Elsewhere, in London, the commodity-heavy FTSE 100 slipped 0.65% as miners led losses, amid the uncertain global economic outlook. Mining giants BHP Billiton and Rio Tinto saw shares drop 2.75% and 1.7% respectively, while copper producer Xstrata slumped 3.3%.
However, shares in the financial sector performed strongly after the Financial Times reported that the U.K. government would not implement major banking reforms until after the 2015 election.
Royal Bank of Scotland shares rallied 7.8%, Lloyds Banking Group jumped 4.75%, while Barclays gained 5.1%.
The outlook for U.S. equity markets was upbeat ahead of earnings reports from the largest U.S. tax preparation company H&R Block.
The Dow Jones Industrial Average futures pointed to a drop of 0.45%, the S&P 500 futures indicated a 0.55% decline, while the Nasdaq 100 futures pointed to a loss of 0.4%.
Later in the day, the U.S. was to publish its closely watched weekly report on initial jobless claims, while the U.S. Institute of Supply Management was to produce data on manufacturing growth.