Investing.com - European stocks opened lower on Thursday, after the release of disappointing German industrial production data and investors remained cautious ahead of the European Central Bank's policy statement due later in the day.
During European morning trade, the DJ Euro Stoxx 50 slid 0.36%, France’s CAC 40 slumped 0.35%, while Germany’s DAX dropped 0.58%.
Official data showed that German industrial production rose 0.3% in June, disappointing expectations for an increase of 1.3%, after a 1.7% decline in May whose figure was revised from a previously estimated 1.8% drop.
Investors were awaiting the ECB’s rate statement later Thursday, as concerns over the divergence in monetary policy between it and its major peers persisted.
The ECB was expected to keep monetary policy unchanged after it cut rates to record lows in June in a bid to avert the threat of deflation in the region.
The latest data showed that the annual rate of inflation in the euro area slowed to 0.4% in July from 0.5% in June, adding to pressure on the central bank to do more.
Financial stocks were mixed, as French lenders BNP Paribas (PARIS:BNPP) and Societe Generale (PARIS:SOGN) lost 0.03% and 0.70%, while Germany's Deutsche Bank (XETRA:DBKGn) gained 0.40%.
Among peripheral lenders, Italy's Intesa Sanpaolo (MILAN:ISP) and Unicredit (MILAN:CRDI) rose 0.05% and 0.98% respectively, while Spanish banks Banco Santander (MADRID:SAN) and BBVA (MADRID:BBVA) fell 0.32% and 0.46%.
Elsewhere, Nestle (SIX:NESN) saw shares surge 2.38% after the Swiss food and beverage company said it is preparing to buy back shares.
In London, FTSE 100 edged down 0.24%, weighed by the insurance sector as shares in RSA Insurance (LONDON:RSA) tumbled 1.60%, while rival Old Mutual (LONDON:OML) led losses on the index, plummeting 2.53%.
Financial stocks were also on the downside, as HSBC Holdings (LONDON:HSBA) slipped 0.28% and Barclays (LONDON:BARC) declined 0.77%, while Lloyds Banking (LONDON:LLOY) and the Royal Bank of Scotland (LONDON:RBS) dropped 0.98% and 1.21% respectively.
In the mining sector, stocks were broadly higher. Shares in Bhp Billiton (LONDON:BLT) gained 0.66% and Fresnillo (LONDON:FRES) advanced 1.42%, while Glencore Xstrata (LONDON:GLEN) jumped 1.75% and Rio Tinto (LONDON:RIO) rallied 2.01%.
Earlier Thursday, Rio Tinto reported a 21% increase in first-half profit, helped by the shipment of record volumes of iron ore.
In the U.S., equity markets pointed to a steady open. The Dow 30 futures pointed to a 0.01% uptick, S&P 500 futures signaled a 0.04% gain, while the Nasdaq 100 futures indicated a 0.08% dip.
Later in the day, the U.S. was to publish the weekly report on initial jobless claims.