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European stocks down amid mounting Europe fears; DAX down 1.64%

Published 06/01/2010, 09:09 AM
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Investing.com – European stocks were down on Tuesday, as mounting fears that the euro zone debt crisis will undermine the region’s banking sector offset a raft of upbeat economic data.

During European early afternoon trade, the EURO STOXX 50 was down 2.16%; France’s CAC 40 fell 2.07%; and Germany's DAX dropped 1.64%.

The U.K.’s FTSE 100 was down 1.91%, despite the release of better-than-expected data on Britain’s manufacturing sector.

In a report, the market research firm Markit and the U.K. Chartered Institute of Purchasing and Supply, an industry group, said their Purchasing Managers’ Index was unchanged during the month at a seasonally adjusted 58, a 15-year high in May.

Miners were among the worst performers, with BHP Billiton dropping 3.63% and Anglo American shedding 2.89% in the wake of disappointing data on Chinese factory activity.

The outlook for U.S. equity markets meanwhile was dim: Dow Jones Industrial Average futures indicated a loss of 1.07%, S&P 500 futures pointed to a fall of 1.29% and Nasdaq 100 futures indicated a decrease of 0.65%.

Earlier on Tuesday, the European Central Bank warned euro zone banks faced up to EUR 195 billion in a "second wave" of potential loan losses triggering a fresh wave of risk aversion.


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