💎 Fed’s first rate cut since 2020 set to trigger market. Find undervalued gems with Fair ValueSee Undervalued Stocks

European stocks decline amid debt worries; DAX down 1.25%

Published 06/04/2012, 04:15 AM
NDX
-
FCHI
-
DJI
-
DE40
-
STOXX50
-
DBKGn
-
MBGn
-
BNPP
-
Investing.com - European stock markets fell in choppy trade on Monday, as sustained concerns over the euro zone’s debt woes and the outlook for global economic growth weighed on investor confidence.

During European morning trade, the EURO STOXX 50 fell 0.18%, France’s CAC 40 dropped 0.19%, while Germany’s DAX 30 plummeted 1.25%.

Market sentiment weakened after the U.S. Department of Labor said on Friday that the economy added just 69,000 jobs in May, far below expectations for a gain of 150,000, while the unemployment rate ticked up to 8.2% from 8.1%.

The disappointing data added to concerns that the economic recovery in the U.S. is losing momentum and fuelled speculation over the possibility of a third round of quantitative easing from the Federal Reserve.

Investors were also eyeing developments in the euro zone, after data showed that unemployment in the single currency bloc rose to a record high of 11% in April and as fears that Spain may soon require an international bailout persisted.

Europe’s second biggest airline, Deutsche Lufthansa, was one of the session’s top losers, as shares dropped 0.80% after Financial Times Deutschland reported the company plans to sell its profitable LSG Sky Chefs catering unit to concentrate on its main businesses.

The German airline also plans to dispose of its profitable information-technology Services unit, the newspaper said.

Auto makers added to losses, as shares in Volkswagen tumbled 2.80% and Daimler declined 1.58%, while BMW retreated 2.03%.

On the upside, financial stocks rose sharply, led by Italy’s Unicredit, up 2.88%. French lenders BNP Paribas and Societe General also climbed 2.24% and 1.60%, while Germany’s Deutsche Bank advanced 0.26%.

Markets in the U.K. remained closed due to a national holiday.

In the U.S., equity markets pointed to a lower open. The Dow Jones Industrial Average futures pointed to drop of 0.55%, S&P 500 futures signaled a 0.43% fall, while the Nasdaq 100 futures indicated a 0.38% loss.

Later in the day, the euro zone was to release a report on investor confidence, while the U.S. was to produce official data on factory orders.


Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.