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European stocks push lower after E.Z. data; Dax down 1.05%

Published 06/05/2013, 07:14 AM
Updated 06/05/2013, 07:20 AM
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Investing.com - European stocks pushed lower on Wednesday, after the release of downbeat euro zone data, while markets eyed the release of a highly anticipated U.S. employment report later in the day.

During European afternoon trade, the EURO STOXX 50 fell plummeted 1.20%, France’s CAC 40 declined 1.20%, while Germany’s DAX 30 retreated 1.05%.

Data showed that the final euro zone service purchasing managers’ index fell to 47.2 in May, down from a preliminary reading of 47.5 but slightly higher than April’s reading of 47.0.

Germany's services PMI ticked down to 49.7 from a preliminary reading of 49.8, but was slightly higher than April’s final reading of 49.6.

A separate report showed that euro zone retail sales fell 0.5% in April, more than expectations for a 0.1% decline and were 1.1% lower from a year earlier.

Financial stocks turned broadly lower, as shares in French lenders BNP Paribas and Societe Generale declined 0.07% and 1.35%, while Germany's Deutsche Bank dropped 0.52%.

Among peripheral lenders, Spanish banks BBVA slipped 0.27% and Banco Santander added 0.18%, while in Italy, Intesa Sanpaolo declined 0.62% and Unicredit climbed 0.75%.

Elsewhere, Carrefour plummeted 4.51% following reports the French company has partnered with the African distribution company CFAO aiming to expand its presence in Africa.

In London, FTSE 100 plummeted 1.36%, even as data showed that service sector activity in the U.K. expanded at the fastest rate since March 2012 last month.

Financial stocks remained broadly lower, as shares in Barclays dropped 0.77% and Lloyds Banking retreated 0.85%, while HSBC Holdings and the Royal Bank of Scotland tumbled 1.27% and 2.13%

Mining companies were also on the downside, with Rio Tinto and BHP Billiton declining 1.40% and 2.59%, while Anglo American plunged 3.05%.

Separately, Tesco Plc dove 4.08% after the U.K.’s largest retailer reported same-store sales that fell short of analysts’ estimates.

Adding to losses, Man Group Plc sank 14.06%, adding to earlier losses, after the hedge-fund manager posted a decline in assets for its flagship fund.

In the U.S., equity markets pointed to a steady to lower open. The Dow Jones Industrial Average futures pointed to a 0.32% fall, S&P 500 futures signaled a 0.45% decline, while the Nasdaq 100 futures indicated a 0.35% loss.

Investors were looking ahead to the U.S. private sector jobs report by payroll processor ADP later Wednesday for clues on Friday’s key nonfarm payrolls data.

The Institute of Supply Management was to release data on U.S. service sector activity later Wednesday.


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