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European stocks lower as markets focus on G20; Dax down 0.45%

Published 07/19/2013, 03:39 AM
Updated 07/19/2013, 04:44 AM
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Investing.com - European stocks opened lower on Friday, as markets were jittery as finance ministers and central bankers from the Group of 20 Nations were gathering in Moscow to dicuss market volatility, unemployment and a slow economic recovery.

During European morning trade, the EURO STOXX 50 slid 0.39%, France’s CAC 40 declined 0.42%, while Germany’s DAX 30 retreated 0.45%.

Earlier Friday, official data showed that producer price inflation in German was flat in June, confounding expectations for a 0.1% downtick, after a 0.3% decline the previous month.

In the U.S., Federal Reserve Chairman Ben Bernanke reiterated that monetary policy will remain highly accommodative, even as the central bank starts to pare back its bond buying.

He made these comments during his second day of testimony on monetary policy before the Financial Services Committee in Congress.

Financial stocks were broadly higher, as French lenders BNP Paribas and Societe Generale added 0.19% and 0.33%, while Germany's Deutsche Bank climbed 0.55%.

Peripheral lenders added to gains, with Spanish bank BBVA edging up 0.15%, while Italy's Intesa Sanpaolo and Unicredit surged 2.27% and 2.33% respectively.

Elsewhere, Finnish software producer Tieto Oyj plumged 3.68% after reporting second-quarter net income of EUR7.4 million, less than half the EUR17.2 million estimated by analysts.

In London, commodity-heavy FTSE 100 dropped 0.44%, weighed by losses in mining stocks.

Mining giants BHP Billiton and Rio Tinto plummeted 2.22% and 2.40% respectively, while rivals Evraz and Fresnillo dove 2.65% and 3.27%.

Financial stocks were also mostly lower, as shares in Barclays slipped 0.27% and HSBC Holdings retreated 0.96%, while Lloyds Banking tumbled 1.20%. The Royal Bank of Scotland overperformed on the other hand, jumping 1.06%.

On the upside, Vodafone climbed 0.47%, even as the wireless carrier reported first-quarter service revenue that fell as a price war in Germany compounded a three-year slump in southern Europe.

In the U.S., equity markets pointed to a lower open. The Dow Jones Industrial Average futures pointed to a 0.20% decline, S&P 500 futures signaled a 0.14% loss, while the Nasdaq 100 futures indicated a 0.17% fall.

Trading volumes were expected to remain light on Friday, as no U.S. data was scheduled to be released throughout the day.


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