Investing.com – European stocks were down for a second day on Wednesday, weighed by worse-than-expected earnings reports and fears that U.S. economic growth is stagnating. U.S. futures indices also declined.
During European morning trade, the EURO STOXX 50 shed 0.97%; France’s CAC 40 fell 0.82% while Germany's DAX was down 0.66%.
On Tuesday, official data showed that that U.S. consumer spending and incomes were below expectations in June while pending home sales fell by an annualized 18.6% in June, sparking fresh fears that the U.S. recovery is stalling.
The financial sector emerged as the worst performer, as shares in Allied Irish Bank tumbled 6.88% after it reported that first-half losses almost doubled, while financial holding group Standard Chartered plunged 5.94% after it posted second-quarter earnings which missed expectations.
In London, the FTSE 100 tumbled 1.42% as shares in British high street retailer Next plummeted 7.14%. The retailer revised down forecasts for second-half sales saying "There has been a noticeable cooling in retail demand in recent months, the mood among consumers is best characterized as cautious."
The outlook for U.S. equity markets, meanwhile, was pessimistic: Dow Jones Industrial Average futures indicated a fall 0.39%, S&P 500 futures pointed to a fall of 0.38% and Nasdaq 100 futures indicated a decline of 0.33%.
Later in the day, the U.S. was to release ADP non-farm payrolls as well as key data on service sector growth.
During European morning trade, the EURO STOXX 50 shed 0.97%; France’s CAC 40 fell 0.82% while Germany's DAX was down 0.66%.
On Tuesday, official data showed that that U.S. consumer spending and incomes were below expectations in June while pending home sales fell by an annualized 18.6% in June, sparking fresh fears that the U.S. recovery is stalling.
The financial sector emerged as the worst performer, as shares in Allied Irish Bank tumbled 6.88% after it reported that first-half losses almost doubled, while financial holding group Standard Chartered plunged 5.94% after it posted second-quarter earnings which missed expectations.
In London, the FTSE 100 tumbled 1.42% as shares in British high street retailer Next plummeted 7.14%. The retailer revised down forecasts for second-half sales saying "There has been a noticeable cooling in retail demand in recent months, the mood among consumers is best characterized as cautious."
The outlook for U.S. equity markets, meanwhile, was pessimistic: Dow Jones Industrial Average futures indicated a fall 0.39%, S&P 500 futures pointed to a fall of 0.38% and Nasdaq 100 futures indicated a decline of 0.33%.
Later in the day, the U.S. was to release ADP non-farm payrolls as well as key data on service sector growth.