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European stocks push lower despite positive data; Dax down 0.96%

Published 07/25/2013, 07:19 AM
Updated 07/25/2013, 07:20 AM
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Investing.com - European stocks pushed lower on Thursday, despite the release of positive German business climate and Spanish unemployment data as a flurry of mixed earnings reports weighed on european equities.

During European afternoon trade, the EURO STOXX 50 retreated 0.81%, France’s CAC 40 slid 0.74%, while Germany’s DAX 30 declined 0.96%.

Data showed that the Ifo index of German business climate ticked up to 106.2 in July from 105.9 In June, slightly better than expectations for a reading of 106.1.

A separate report showed that Spain's unemployment rate ticked down to 26.3% in the second quarter, from a reading of 27.2 in the previous quarter. Analysts had expected the unemployment rate to remain unchanged in the last quarter.

Financial stocks turned broadly lower, as French lenders BNP Paribas and Societe Generale declined 0.18% and 1.49%, while Germany's Deutsche Bank slipped 0.14%.

Among peripheral lenders, Spanish bank BBVA shed 0.45%, while Italy's Unicredit and Intesa Sanpaolo retreated 0.74% and 1.07% respectively.

Among earnings, BASF plunged 4.28% after the chemical maker reported profit that missed projections and said meeting its targets looks difficult.

Adding to losses, Michelin plummeted 3.21% after the largest tiremaker reported a 13% decline in first-half profit, as slumping auto markets in Europe weighed on demand.

In London, commodity-heavy FTSE 100 tumbled 0.91%, weighed by losses in mining stocks, even as data showed that economic growth in the U.K. accelerated to 1.4% on a year-over-year basis in the second quarter, in line with expectations.

Mining giants Rio Tinto and BHP Billiton plummeted 2% and 2.08% respectively, while rivals Anglo American and Fresnillo dove 3.48% and 4.86%.

Meanwhile, financial stocks turned broadly lower. Shares in Lloyds Banking shed 0.38% and HSBC Holdings dropped 0.55%, the Royal Bank of Scotland and Barclays retreated 0.65% and 0.82%.

Elsewhere, ARM Holdings sank 6.81%, erasing the previous day's gains after Sanford C. Bernstein said its valuation may drop in the second half. On Wednesday, the company reported second-quarter sales that beat estimates.

In the U.S., equity markets pointed to a lower open. The Dow Jones Industrial Average futures pointed to a 0.52% drop, S&P 500 futures signaled a 0.64% decline, while the Nasdaq 100 futures indicated a 0.57% retreat.

Later in the day, the U.S. was to produce data on initial jobless claims and durable goods orders.


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