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European stocks open lower, Draghi remarks still weigh; Dax down 0.79%

Published 06/28/2017, 03:35 AM
© Reuters.  Frankfurt Stock Exchange
UK100
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FCHI
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DE40
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STOXX50
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HSBA
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BARC
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LLOY
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BAYGN
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LHAG
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DBKGn
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CBKG
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BNPP
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SOGN
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BBVA
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SAN
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HIK
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RIO
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BNZL
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BHPB
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ISP
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CRDI
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SYENF
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ESZ24
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1YMZ24
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NQZ24
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MON
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GLEN
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CURY
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Investing.com - European stocks opened lower on Wednesday, as markets digested the previous session’s comments by European Central Bank President Mario Draghi and eyed additional remarks by the central bank head.

During European morning trade, the EURO STOXX 50 declined 0.86%, France’s CAC 40 lost 0.84%, while Germany’s DAX 30 retreated 0.79%.

European equities weakened after Draghi said factors weighing on inflation in the euro area were mainly temporary, adding that the bank could look through them.

Draghi also said the ECB sees growth that is above trend and well distributed across the euro area, but reiterated that “a considerable degree” of stimulus is still needed in the euro zone, and that the ECB must be “prudent” in how it unwinds it.

Financial stocks were mixed, as BNP Paribas (PA:BNPP) slipped 0.24% and Societe Generale (PA:SOGN) gained 0.35% in France, while Commerzbank (DE:CBKG) rallied 1.51% and Deutsche Bank (DE:DBKGn) rose 0.23% in Germany.

Among peripheral lenders, Italy’s Intesa Sanpaolo (MI:ISP) and Unicredit (MI:CRDI) advanced 0.29% and 0.76% respectively, while Spanish banks BBVA (MC:BBVA) and Banco Santander (MC:SAN) slid 0.26% and 0.80%.

Elsewhere, Lufthansa AG VNA O.N. (DE:LHAG) shares rose 0.31% following reports the airliner and Fraport, the operator of Frankfurt airport, are close to ending a dispute over Ryanair concessions at Germany’s largest hub.

On the downside, Syngenta AG (SIX:SYNN) declined 0.39% after the Swiss company vowed to bulk up its seeds business and join the chase for assets Bayer (DE:BAYGN) must sell to gain regulatory approval for its takeover of Monsanto (NYSE:MON).

In London, FTSE 100 retreated 0.45%, weighed by Hikma Pharmaceuticals PLC (LON:HIK), whose shares tumbled 1.72% after analysts at HSBC reiterated their reduce rating on the stock.

Mining stocks were also broadly lower on the commodity-heavy index. Shares in BHP Billiton (LON:BLT) slipped 0.13% and Glencore (LON:GLEN) dropped 0.45%, while Rio Tinto (LON:RIO) declined 0.46%.

Meanwhile, financial stocks were steady to lower as the Royal Bank of Scortland and Barclays (LON:BARC) inched up 0.04% and 0.05% respectively, while Lloyds Banking (LON:LLOY) and HSBC Holdings (LON:HSBA) retreated 0.43% and 0.59%.

Bunzl (LON:BNZL) was one of the top performers on the index, with shares up 3.94% after the business supplies distributor estimated a 7% increase in first-half revenue, helped by recent acquisitions.

Dixons Carphone (LON:DC) was also on the upside, as shares jumped 2.60% after the company said annual profit surpassed £500 million for the first time, thanks to a "good year".

In the U.S., equity markets pointed to a steady to lower open. The Dow Jones Industrial Average futures pointed to a 0.05% dip, S&P 500 futures signaled a 0.09% loss, while the Nasdaq 100 futures indicated a 0.33% decline.

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