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Europe stocks decline on banks, retailers; DAX falls 0.91%

Published 09/22/2010, 05:38 AM
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Investing.com – European stocks were down on Wednesday, as financial sector stocks led declines; meanwhile U.S. futures indexes pointed to a lower open on Wall Street after Federal Reserve officials said the U.S. economic recovery would remain modest in the near term.

During European morning trade, the EURO STOXX 50 tumbled 1.20%; France’s CAC 40 shed 0.95% and Germany's DAX fell 0.91%.

On Tuesday, Fed officials expressed concern over sluggish U.S. growth and continuing low levels of inflation and indicated they were ready to implement quantitative easing measures if necessary.

Following the news, financial sector stocks declined, as shares in Lloyds Banking Group tumbled 2.13%, Banco Santander stocks shed 2.58% and Barclays fell 1.27%.

Elsewhere, shares in Deutsche Bank plummeted 7.40%, after Germany’s biggest bank said it expected to post a third-quarter net loss. Meanwhile, stocks in Italy’s largest bank UniCredit plunged 3.11%, after it announced Chief Executive Alessandro Profumo resigned.

In London, the FTSE 100 was down 0.53%, as retailers led losses. Shares in Marks and Spencer Group were down 1.60%, NEXT declined 1.77% and Moss Bros Group tumbled 3.37%. 

The outlook for U.S. equity markets, meanwhile, was downbeat: Dow Jones Industrial Average futures indicated a drop of 0.14%, S&P 500 futures pointed to a loss of 0.18% and Nasdaq 100 futures were down 0.19%.

Later in the day, U.S. Treasury Secretary Timothy Geithner was due to speak. 

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