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European stocks extend losses on PMI data; DAX down 0.74%

Published 02/22/2012, 08:17 AM
NDX
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UK100
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FCHI
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DJI
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DE40
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STOXX50
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HSBA
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BARC
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NWG
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DBKGn
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BNPP
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PEUP
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SOGN
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XTA
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RIO
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BHPB
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KAZ
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NEXI
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HG
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FTNMX551030
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COVE
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IMOB
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Investing.com - European stock markets extended losses on Wednesday, following downbeat euro zone economic data while uncertainty over Greece’s ability to overcome its debt crisis despite a new bailout weighed.

During European afternoon trade, the EURO STOXX 50 fell 0.71%, France’s CAC 40 declined 0.43%, while Germany’s DAX 30 dropped 0.74%.

Preliminary data showed earlier that manufacturing activity in the euro zone improved less-than-expected in February, remaining in contraction territory for the seventh consecutive month, while service sector activity in the euro zone unexpectedly contracted.

Meanwhile, investors remained cautious amid uncertainty over Greece’s ability to implement the terms of a EUR130 billion bailout package approved by euro zone finance ministers on Tuesday.

Financial stocks turned lower as shares in France’s Societe Generale and BNP Paribas plummeted 2.75% and 2.56%, while Germany’s biggest lenders Deutsche Bank and Commerzbank declined 1.21% and 1.73% respectively.

Elsewhere, Nexity, the French real-estate services company, plunged 5.66% as it forecast a “trough year” in 2012 for the new homes market and a slowdown for commercial real estate.

On the upside, Peugeot surged 14.52% after French Labor Minister Xavier Bertrand said the company is in talks on a possible alliance with General Motors.

In London, FTSE 100 fell 0.38%, after the minutes of the Bank of England’s February policy meeting showed that two members of the BoE’s monetary policy committee wanted to increase the size of the bank’s asset purchase program by GBP75 billion.

Shares in Barclays tumbled 1.84% and the Royal Bank of Scotland declined 0.82%, while HSBC Holdings and Lloyds Banking retreated 0.31% and 0.11% respectively. 

Mining giants Rio Tinto and Bhp Billiton also added to losses, with shares falling 1.03% and 0.07%, while copper producers Xstrata and Kazakhmys declined 0.54% and 1.20%.

Meanwhile, Cove Energy skyrocketed 24.97%, as Royal Dutch Shell, Europe’s biggest oil company, offered to buy the U.K. explorer for GBP992.4 million in cash.

In the U.S., equity markets pointed to a lower open. The Dow Jones Industrial Average futures pointed to a fall of 0.10%, S&P 500 futures signaled a 0.14% decline, while the Nasdaq 100 futures indicated a 0.15% loss.

Also Wednesday, official data showed that industrial new orders rose more-than-expected in December, jumping 1.9% after a 1.1% decline the previous month. Analysts had expected industrial new orders to rise 0.6% in December.


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