Investing.com – European stock markets were broadly lower on Wednesday, falling to an 11-month low amid growing concerns over the U.S. economic outlook, while Societe Generale shares dropped sharply following disappointing earnings.
During European morning trade, the EURO STOXX 50 fell 0.4%, France’s CAC 40 shed 0.7%, while Germany’s DAX 30 sank 1%.
The outlook for U.S. economic growth remained downbeat after data on Tuesday showed that U.S. consumer spending declined in June for the first time in two years, while personal income recorded the smallest gain since last November.
Meanwhile, the risk of a U.S. sovereign debt downgrade lingered, despite the passage through the Senate of a bill to raise the country’s debt ceiling, after ratings agency Moody’s assigned a negative outlook to the U.S. credit rating.
In earnings news, French lender Societe Generale saw shares tumble 7.2% after reporting a 31% drop in second quarter net profit, as it took a EUR395 million charge on its exposure to Greek debt. The bank warned that its 2012 net profit target of EUR6 billion "now appears difficult to achieve."
The downbeat results weighed on other shares in the sector, with Credit Agricole dropping 3.25%, BNP Paribas falling 1.1%, while Italy’s second largest lender Intesa Sanpaolo slumped 0.9%.
In London, the FTSE 100 dropped 1.2% as commodity-linked shares led losses amid concerns the uncertain global economic outlook would weigh on demand for raw materials.
Mining giant Rio Tinto saw shares fall 1.8%, copper producer Xstrata dropped 2.1%, while shares in BHP Billiton sank 2.6% after Credit Suisse downgraded the stock.
Oil and gas exploration firm Cairn Energy saw shares fall 3.5% after saying a well off the coast of Greenland failed to find oil or gas.
Meanwhile, the outlook for U.S. equity markets was upbeat ahead of earnings reports from media giants Comcast and Time Warner, as well as credit card processor Mastercard.
The Dow Jones Industrial Average futures pointed to a gain of 0.3%, the S&P 500 futures added 0.3%, while the Nasdaq 100 futures rose 0.35%.
Later in the day, payroll processing firm ADP was publish a report on U.S. non-farm payrolls, while the U.S. Institute of Supply Management was to publish data on service sector growth.
During European morning trade, the EURO STOXX 50 fell 0.4%, France’s CAC 40 shed 0.7%, while Germany’s DAX 30 sank 1%.
The outlook for U.S. economic growth remained downbeat after data on Tuesday showed that U.S. consumer spending declined in June for the first time in two years, while personal income recorded the smallest gain since last November.
Meanwhile, the risk of a U.S. sovereign debt downgrade lingered, despite the passage through the Senate of a bill to raise the country’s debt ceiling, after ratings agency Moody’s assigned a negative outlook to the U.S. credit rating.
In earnings news, French lender Societe Generale saw shares tumble 7.2% after reporting a 31% drop in second quarter net profit, as it took a EUR395 million charge on its exposure to Greek debt. The bank warned that its 2012 net profit target of EUR6 billion "now appears difficult to achieve."
The downbeat results weighed on other shares in the sector, with Credit Agricole dropping 3.25%, BNP Paribas falling 1.1%, while Italy’s second largest lender Intesa Sanpaolo slumped 0.9%.
In London, the FTSE 100 dropped 1.2% as commodity-linked shares led losses amid concerns the uncertain global economic outlook would weigh on demand for raw materials.
Mining giant Rio Tinto saw shares fall 1.8%, copper producer Xstrata dropped 2.1%, while shares in BHP Billiton sank 2.6% after Credit Suisse downgraded the stock.
Oil and gas exploration firm Cairn Energy saw shares fall 3.5% after saying a well off the coast of Greenland failed to find oil or gas.
Meanwhile, the outlook for U.S. equity markets was upbeat ahead of earnings reports from media giants Comcast and Time Warner, as well as credit card processor Mastercard.
The Dow Jones Industrial Average futures pointed to a gain of 0.3%, the S&P 500 futures added 0.3%, while the Nasdaq 100 futures rose 0.35%.
Later in the day, payroll processing firm ADP was publish a report on U.S. non-farm payrolls, while the U.S. Institute of Supply Management was to publish data on service sector growth.