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European stocks remain lower, Syria in focus; Dax down 1.04%

Published 08/28/2013, 07:19 AM
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Investing.com - European stocks remained lower on Wednesday, as market sentiment weakened broadly amid ongoing tension in Syria and the possibility of a U.S. military intervention in the region.

During European afternoon trade, the EURO STOXX 50 declined 0.71%, France’s CAC 40 edged down 0.19%, while Germany’s DAX 30 tumbled 1.04%.

Market sentiment was hit by growing expectations for U.S. military strikes against Syria’s government. U.S. Vice-President Joe Biden said Tuesday there is "no doubt" that the Syrian government used chemical weapons against civilians and added that it must be held accountable.

Meanwhile, concerns over the timing of a reduction in Federal Reserve stimulus eased after data on Tuesday showed that U.S. consumer confidence rose more than expected in August, hitting the highest level since January 2008.

In the euro zone, data earlier showed that the Gfk German consumer climate index ticked down to 6.9 in August from a reading of 7.0 the previous month. Analysts had expected the index to rise to 7.1 this month.

Financial stocks were mixed, as French lender BNP Paribas added 0.35% and Societe Generale slipped 0.14%, while Germany's Deutsche Bank declined 0.85%.

Among peripheral lenders, Spanish banks Banco Santander and BBVA tumbled 0.98% and 1.35% respectively, while Italy's Unicredit gained 0.43%.

Elsewhere, Accor plummeted 4.05% aftet the hotel operator said first-half earnings before interest and taxes fell to EUR198 million from EUR212 million euros a year earlier, missing the average analyst projection.

In London, commodity-heavy FTSE 100 dropped 0.40%, weighed by sharp losses in mining stocks and as markets eyed a speech by Bank of England Governor Mark Carney later in the trading day.

Shares in Glencore Xstrata tumbled 2.65% and Randgold Resources plunged 2.06%, while Polymetal remained one of the worst performers, down 9.28%, after posting a first-half net loss of USD255 million, compared with a USD157 million profit a year earlier.

Meanwhile, oil and gas companies remained broadly on the upside, helped by the recent rise in oil prices. BP climbed 0.72% and Tullow Oil jumped 1.77%, while Petrofac saw shares rally 1.09%.

In the financial sector, stocks turned broadly lower as Barclays dropped 0.74% and the Royal Bank of Scotland lost 0.68%, while Lloyds Banking and HSBC Holdings tumbled 1.20% and 1.44% respectively.

In the U.S., equity markets pointed to a steady open. The Dow Jones Industrial Average futures pointed to a 0.01% gain, S&P 500 futures signaled a 0.02% rise, while the Nasdaq 100 futures indicated a 0.09% increase.

Later in the day, the U.S. was to release data on pending home sales.


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