Investing.com - European stocks edged lower on Wednesday, as investors awaited the release of euro zone data, while concerns over the handling of Spain's debt woes continued to weigh.
During European morning trade, the EURO STOXX 50 fell 0.18%, France’s CAC 40 dropped 0.34%, while Germany’s DAX 30 edged down 0.10%.
Risk sentiment weakened after Spanish Prime Minister Mariano Rajoy on Tuesday ruled out a bailout request before this weekend, despite persistent speculation that Madrid was moving closer to requesting external financial aid.
Separately, Moody's said it would announce the results of its review o Spain's sovereign debt rating some time this month, easing concerns over an imminent downgrade.
Meanwhile, official data showing that growth in China’s service sector moderated in September sparked fresh concerns over a slowdown in the world’s second largest economy.
Financial stocks were mixed, as shares in French lenders Societe Generale and BNP Paribas decline 0.58% and 0.11%, while Germany saw Deutsche Bank jump 1.39% and Commerzbank drop 0.97%.
Meanwhile, Sanofi retreated 0.51% after Bristol-Myers Squibb agreed to return worldwide rights for the blood thinner Plavix and the hypertension medicine Avapro to France's biggest drugmaker now that the medicines are losing patent protection.
Also on the downside, Telefonica edged down 0.09% as Spain’s biggest phone company said it plans to file with regulators as early as today its intention to sell shares in the O2 Germany unit.
In London, FTSE 100 fell 0.14%, after data showed that service sector activity in the U.K. declined more-than-expected in September.
Tesco was one of the session's top losers, with shares tumbling 1.37% after the U.K.’s largest retailer reported the first profit drop in almost two decades, as it attempted to halt declining same-store sales by ramping up investment in its supermarkets.
On the upside, financial stocks were mostly higher. Shares in HSBC Holdings climbed 0.52% and the Royal Bank of Scotland rose 0.47%, while the Lloyds Banking advanced 0.49%. Barclays underperformed on the other hand, dipping 0.01%.
Elsewhere, mining giants Rio Tinto jumped 1.14% and rival BHP Billiton retreated 0.23%, while copper producers Xstrata and Kazakhmys advanced 1.14% and 0.28%.
In the U.S., equity markets pointed to a steady open. The Dow Jones Industrial Average futures pointed to a 0.04% fall, S&P 500 futures signaled a 0.07% loss, while the Nasdaq 100 futures indicated a 0.07% gain.
Later in the day, the euro zone was to release official data on retail sales. Meanwhile, the U.S. was to produce a report on ADP nonfarm payrolls and the Institute of Supply Management was to produce data on U.S. service sector activity.