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European stocks lower as Fed worries weigh; Dax down 0.50%

Published 08/15/2013, 03:43 AM
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Investing.com - European stocks were lower on Thursday, despite the previous day's upbeat growth data from the euro zone, as uncertainty over the future of the Federal Reserve's stimulus program continued to weigh on investor confidence.

During European morning trade, the EURO STOXX 50 slipped 0.24%, France’s CAC 40 edged down 0.21%, while Germany’s DAX 30 dropped 0.50%.

European equities gained ground on Wednesday, after data showed that the euro zone economy returned to growth in the second quarter, emerging from an 18-month recession.

The euro zone economy expanded 0.3% in the three months to June, the fastest quarterly expansion since the first quarter of 2011.

But investors remained cautious after data showed that U.S. producer price inflation was flat in July, while core inflation rose less-than-forecast.

The disappointing data raised fresh doubts over whether the economic recovery is strong enough for the Fed to begin unwinding its USD85 billion-a-month asset purchase program later this year.

Financial stocks were mixed, as French lenders BNP Paribas and Societe Generale added 0.10% and 0.07%, while Germany's Deutsche Bank slid 0.47%.

Among peripheral lenders, Spanish banks BBVA and Banco Santander fell 0.01% and 0.26% respectively, while Italy's Unicredit and Intesa Sanpaolo gained 0.26% and 0.60%.

Elsewhere, Oriflame plunged 5.36% after reporting earnings of EUR42.2 million in the second quarter, above analysts's estimates, and sales of EUR360 million, below expectations.

In London, commodity-heavy FTSE 100 declined 0.43%, weighed by losses in mining stocks.

Mining giants Rio Tinto and Anglo American retreated 1.12% and 0.57% respectively, while Astrazaneca and Evraz plunged 2.02% and 2.66%.

Meanwhile, financial stocks were mostly higher, as shares in Barclays inched 0.05% higher and HSBC Holdings added 0.10%, while the Royal Bank of Scotland rallied 1.80%. Lloyds Banking underperformed on the other hand, shedding 0.49%.

In the U.S., equity markets pointed to a lower open. The Dow Jones Industrial Average futures pointed to a 0.15% fall, S&P 500 futures signaled a 0.17% loss, while the Nasdaq 100 futures indicated a 0.46% drop.

Later in the day, the U.S. was to release reports on consumer inflation, jobless claims, industrial production and manufacturing data from the Empire state and the Philly Fed.


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