Investing.com - European stocks extended losses on Thursday, as disappointing economic data from China and the euro zone added to concerns over a global economic slowdown, ahead of the release of U.S. reports later in the day.
During European afternoon trade, the EURO STOXX 50 declined 0.73%, France’s CAC 40 slumped 0.58%, while Germany’s DAX 30 dropped 0.36%.
Sentiment remained under pressure after preliminary data showed that the euro zone’s manufacturing purchasing manufacturers' index rose more-than-expected in September, while service sector activity fell unexpectedly.
A separate report showed that manufacturing activity in Germany contracted at the slowest rate in six months in September, while service sector activity grew modestly.
Elsewhere, data earlier showed that China’s HSBC Flash Purchasing Managers Index rose slightly to 47.8 in September from a final reading of 47.6 in August.
Despite the modest uptick higher, manufacturing activity in China remained in contraction territory for the 11th consecutive month, adding to fears over a further slowdown in the region’s largest economy.
Financial stocks pushed broadly lower, led by Italian lenders Intesa Sanpaolo and Unicredit, plunging 3% and 2.88%, while Spain's Banco Santander and BBVA slumped 1.75% and 1.47%
Meanwhile, Germanys two biggest lenders, Commerzbank and Deutsche Bank, retreated 3.15% and 1.40% respectively, while France's BNP Paribas and Societe Generale tumbled 1.92% and 2.07%.
Energy stocks also extended earlier losses, on the back of dropping oil prices, as French oil group Total plummeted 2.42% and Spain's Repsol dove 3.20%.
In London, commodity-heavy FTSE 100 retreated 0.61%, weighed by losses in mining and oil stocks, while data earlier showed that retail sales in the U.K. fell less-than-expected in August.
Mining giants Rio Tinto and BHP Billiton plunged 2.48% and 2.68%, while steel producer Evraz
sank 4.20%.
Oil giant Anglo American also trended lower, with shares plunging 3.69%, while BP edged up 0.04% amid reports it is in talks with the Russian government to sell its stake in TNK-BP to Rosneft for billions of dollars in cash and a 12.5% stake in the Russian state oil giant.
Elsewhere, U.K. lenders remained broadly lower. HSBC Holdings fell 0.32% and the Royal Bank of Scotland dropped 0.78%, while shares in Lloyds Banking and Barclays slumped 1.29% and 1.71% respectively.
In the U.S., equity markets pointed to a moderately lower open. The Dow Jones Industrial Average futures pointed to a 0.19% fall, S&P 500 futures signaled a 0.23% decline, while the Nasdaq 100 futures indicated a 0.16% loss.
Also Thursday, Spain’s Treasury sold EUR859 billion worth of 10-year government bonds at an average yield of 5.66%, down from 6.64% at a similar auction last month.
Later in the day, the U.S. was to release its weekly government report on initial jobless claims, as well as an index of manufacturing activity in Philadelphia.
During European afternoon trade, the EURO STOXX 50 declined 0.73%, France’s CAC 40 slumped 0.58%, while Germany’s DAX 30 dropped 0.36%.
Sentiment remained under pressure after preliminary data showed that the euro zone’s manufacturing purchasing manufacturers' index rose more-than-expected in September, while service sector activity fell unexpectedly.
A separate report showed that manufacturing activity in Germany contracted at the slowest rate in six months in September, while service sector activity grew modestly.
Elsewhere, data earlier showed that China’s HSBC Flash Purchasing Managers Index rose slightly to 47.8 in September from a final reading of 47.6 in August.
Despite the modest uptick higher, manufacturing activity in China remained in contraction territory for the 11th consecutive month, adding to fears over a further slowdown in the region’s largest economy.
Financial stocks pushed broadly lower, led by Italian lenders Intesa Sanpaolo and Unicredit, plunging 3% and 2.88%, while Spain's Banco Santander and BBVA slumped 1.75% and 1.47%
Meanwhile, Germanys two biggest lenders, Commerzbank and Deutsche Bank, retreated 3.15% and 1.40% respectively, while France's BNP Paribas and Societe Generale tumbled 1.92% and 2.07%.
Energy stocks also extended earlier losses, on the back of dropping oil prices, as French oil group Total plummeted 2.42% and Spain's Repsol dove 3.20%.
In London, commodity-heavy FTSE 100 retreated 0.61%, weighed by losses in mining and oil stocks, while data earlier showed that retail sales in the U.K. fell less-than-expected in August.
Mining giants Rio Tinto and BHP Billiton plunged 2.48% and 2.68%, while steel producer Evraz
sank 4.20%.
Oil giant Anglo American also trended lower, with shares plunging 3.69%, while BP edged up 0.04% amid reports it is in talks with the Russian government to sell its stake in TNK-BP to Rosneft for billions of dollars in cash and a 12.5% stake in the Russian state oil giant.
Elsewhere, U.K. lenders remained broadly lower. HSBC Holdings fell 0.32% and the Royal Bank of Scotland dropped 0.78%, while shares in Lloyds Banking and Barclays slumped 1.29% and 1.71% respectively.
In the U.S., equity markets pointed to a moderately lower open. The Dow Jones Industrial Average futures pointed to a 0.19% fall, S&P 500 futures signaled a 0.23% decline, while the Nasdaq 100 futures indicated a 0.16% loss.
Also Thursday, Spain’s Treasury sold EUR859 billion worth of 10-year government bonds at an average yield of 5.66%, down from 6.64% at a similar auction last month.
Later in the day, the U.S. was to release its weekly government report on initial jobless claims, as well as an index of manufacturing activity in Philadelphia.