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Europe stocks down, while U.S. futures tumble; DAX sheds 1.37%

Published 07/20/2010, 08:18 AM
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Investing.com – European stocks were down on Tuesday, amid disappointing earnings reports and after Hungary raised less than expected in an auction of government debt. U.S. futures also tumbled ahead of Wall Streets open.

During European afternoon trade, the EURO STOXX 50 declined 1.39%; France’s CAC 40 fell 1.53% and Germany's DAX shed 1.37%.

The DAX's losses came after information technology giant, IBM declined 4.2% and electronics company Texas Instruments declined 3.1% in Germany as revenue at both companies missed forecasts.

In London, the FTSE 100 slid 0.78% as Cable & Wireless Worldwide Plc slumped 16% after the company said it now expects “somewhat slower growth” in earnings as a result of cutbacks in British government spending.

Earlier in the day, Hungary’s government sold 35 billion forint of three-month bills, 10 billion less than planned, at a yield of 5.47%

Asian markets ended mostly higher on Tuesday amid speculation that Beijing will avoid further tightening measures as the nation's economic growth moderated.

The outlook for U.S. equity markets, meanwhile, was pessimistic as investors eyed quarterly earnings reports from Goldman Sachs, Yahoo and Apple: Dow Jones Industrial Average futures indicated a decrease of 1.45%, S&P 500 futures pointed to a drop of 1.46% and Nasdaq 100 futures indicated a fall of 1.69%.

Sentiment turned negative late Monday after IBM reported a decline in new technology services contracts in the second quarter and Texas Instruments reported weaker-than-expected second quarter earnings.

Later Tuesday, the U.S. was to publish closely watched data on building permits and housing starts.

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