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European stocks open lower in cautious trade; Dax down 0.17%

Published 11/18/2013, 03:32 AM
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Investing.com - European stocks opened lower on Monday, as markets remained cautious amid ongoing speculation over when the Federal Reserve will begin tapering its stimulus program.

During European morning trade, the EURO STOXX 50 slipped 0.21%, France’s CAC 40 edged down 0.11%, while Germany’s DAX 30 fell 0.17%.

Global equities found support last week amid heightened expectations that the Fed will stick to its easy money policies for some time to come, after comments by Fed Chairwoman nominee Janet Yellen last week were seen as supportive of continued stimulus.

Investors were also focusing on developments in Italy following a split within Silvio Berlusconi's party this weekend, which is a key coalition partner.

On Saturday, Italian Interior Minister Angelino Alfano said that all five centre-right ministers would remain in government after a split in Silvio Berlusconi's People of Freedom party and that the stability of the ruling coalition was not at risk.

Financial stocks were mixed, as BNP Paribas added 0.13% and Societe Generale slid 0.31%, although Germany's Deutsche Bank edged up 0.14%.

Among peripheral lenders, Spanish banks BBVA and Banco Santander declined 0.28% and 0.42% respectively, while Italy's Unicredit gained 0.34%.

Elsewhere, Sonova surged 6,26% after predicting that annual earnings would grow 14%, compared with a previous forecast of 9% to 13%.

In London, FTSE 100 inched down 0.02%, despite gains in financial stocks.

Shares in the Royal Bank of Scotland gained 0.45% and Barclays climbed 0.54%, while HSBC Holdings and Lloyds Banking advanced 0.60% and 0.73% respectively.

Lloyds Banking earlier said that it agreed to sell its Scottish Widows Investment division to Aberdeen, up 0.65%, for GBP560 million. The lender will receive a 9.9% stake in Scotland’s largest money manager.

Mining stocks added to gains, as BHP Billiton and Rio Tinto rose 0.21% and 0.38%, while Glencore Xstrata advanced 0.45%.

In the U.S., equity markets pointed to a steady open. The Dow Jones Industrial Average futures pointed to a 0.03% dip, S&P 500 futures signaled a 0.08% loss, while the Nasdaq 100 futures indicated a 0.02% slip.

Later in the day, the U.S. was to release private sector data on the outlook for the housing sector.


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