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European stocks lower ahead of BoE; Dax down 0.56%

Published 08/07/2013, 03:47 AM
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Investing.com - European stocks were lower on Wednesday, as markets were jittery ahead of comments by Bank of England Governor Mark Carney later in the day, while uncertainty over the future of the Federal Reserve's stimulus program also weighed.

During European morning trade, the EURO STOXX 50 slid 0.36%, France’s CAC 40 retreated 0.51%, while Germany’s DAX 30 shed 0.56%.

European equities gained ground on Tuesday, after official data showed that German factory orders jumped 3.8% in June, compared to expectations for a gain of 1%.

A separate report showed that Italy’s economy contracted by a smaller than forecast 0.2% in the second quarter, indicating that the euro zone’s third largest economy is stabilizing.

Meanwhile, the International Monetary Fund revised up its growth forecast for Germany to 1.4% in 2014, from 1.3% previously and maintained its growth forecast for this year at 0.3% in its annual report on the country.

Financial stocks were mixed, as French lenders BNP Paribas and Societe Generale tumbled 1.15% and 0.92%, while Germany's Deutsche Bank added 0.23%.

Among peripheral lenders, Spanish bank Banco Santander slid 0.38%, while Italy's Intesa Sanpaolo and Unicredit rallied 1.14% and 2.68%.

Elsewhere, Rexel plummeted 4.01% after Ray Investment sold a stake worth about EUR546 million in the electrical-equipment distributor.

Among earnings, Swisscom reported second-quarter profit and revenue that topped analysts' estimates, sending shares up 0.75%. The Swiss phone company also said it plans to appoint a new chief executive officer by the end of this year.

In London, commodity-heavy FTSE 100 dropped 0.50%, weighed by losses in the mining sector.

Mining giants BHP Billiton and Rio Tinto retreated 0.65% and 1.62%, while rivals Fresnillo and Randgold Resources lost 0.65% and 6.76% respectively.

Financial stocks were also mostly lower, as shares in Barclays slumped 0.50% and Lloyds Banking edged down 0.16%, while HSBC Holdings declined 0.89%. However, the Royal Bank of Scotland overperformed for the second consecutive session, adding 0.14%.

In the U.S., equity markets pointed to a lower open. The Dow Jones Industrial Average futures pointed to a 0.45% drop, S&P 500 futures signaled a 0.46% decline, while the Nasdaq 100 futures indicated a 0.36% loss.

Investors were awaiting the Bank of England’s quarterly inflation report later in the trading day, while central bank Governor Mark Carney was to also present the findings of a review on providing markets with forward guidance on interest rates.


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