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European stocks lower as focus remains on Fed; Dax down 0.12%

Published 11/13/2013, 03:36 AM
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Investing.com - European stocks were lower on Wednesday, as investors remained focused on the future of the Federal Reserve's asset purchase program amid growing expectations for tapering to begin before the year end.

During European morning trade, the EURO STOXX 50 slipped 0.13%, France’s CAC 40 eased 0.03%, while Germany’s DAX 30 edged down 0.12%.

Markets were jittery after last week’s stronger than forecast U.S. nonfarm payrolls report prompted investors to bring forward expectations for a reduction in the Fed’s USD85 billion-a-month asset purchase program.

Investors were turning their attention to Thursday’s Senate hearing to confirm Janet Yellen as the first chairwoman of the Federal Reserve, for indications on the future course of U.S. monetary policy.

Financial stocks were broadly lower, as French lenders BNP Paribas and Societe Generale slipped 0.21% and 0.23%, while Germany's Deutsche Bank fell 0.29%.

Among peripheral lenders, Spanish banks Banco Santander and BBVA lost 0.06% and 0.20% respectively, while Italy's Intesa Sanpaolo and Unicredit declined 0.71% and 1.60%.

Elsewhere, Telefonica gained 0.39% amid reports the company has approached potential acquisition targets and partners in Mexico, where it’s seeking to challenge billionaire Carlos Slim’s dominance.

In London, FTSE 100 declined 0.54%, as U.K. lenders tracked their European counterparts lower.

Shares in HSBC Holdings lost 0.78% and Barclays tumbled 1.07%, while Lloyds Banking plummeted 1.13%. The Royal Bank of Scotland overperformed however, up 0.30%.

British Sky Broadcasting Group was the worst performer on the index, down 3.01%, after announcing that it purchased 250,000 of its ordinary shares of 0.50 pence each for cancellation.

Elsewhere, Sainsbury saw shares jump 1.82% as the U.K.’s third-largest supermarket company said first-half earnings rose 7%.

In the U.S., equity markets pointed to a steady to lower open. The Dow Jones Industrial Average futures pointed to a 0.01% dip, S&P 500 futures signaled a 0.05% loss, while the Nasdaq 100 futures indicated a 0.14% fall.


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