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European stocks remain lower after downbeat data; Dax down 0.70%

Published 12/12/2013, 07:16 AM
European stocks remain lower after downbeat data
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Investing.com - European stocks remained lower on Thursday, after the release of downbeat industrial production data out of the euro zone, while investors were cautious amid lower expectations for additional easing measures by the European Central Bank.

During European afternoon trade, the EURO STOXX 50 slid 0.46%, France’s CAC 40 shed 0.32%, while Germany’s DAX 30 dropped 0.70%.

Eurostat said industrial production in the euro area fell by 1.1% in October from a month earlier. Economists had forecast an increase of 0.3%. Production in September was revised to a 0.2% decline, compared to a previously reported drop of 0.5%.

The report said the decline in production was driven by a 2.4% drop in production of durable consumer goods, and a 4% decline in energy production.

European equities also remained under pressure as expectations for further monetary easing by the ECB dimmed after the bank left monetary policy unchanged at its meeting this month, following a surprise rate cut in November.

Elsewhere, news that U.S. Congressional leaders reached an agreement on a two year budget deal was seen as increasing the likelihood that the Federal Reserve would begin to scale back its USD85 billion a month asset purchase program at next week’s policy meeting.

Financial stocks were mostly lower, as BNP Paribas inched up 0.02% and Societe Generale slipped 0.18% in France, while Germany's Deutsche Bank dropped 0.49%.

Among peripheral lenders, Spanish banks BBVA and Banco Santander declined 0.41% and 1.10% respectively, while Italy's Unicredit and Intesa Sanpaolo retreated 0.72% and 1.08%.

French car maker Peugeot dove 9.48% after saying it is studying the potential for a capital increase and partnerships.

On the upside, Fortum Oyj surged 3.92% after the electricity provider said it will sell its Finnish power-distribution business for EUR2.55 billion.

In London, FTSE 100 retreated 0.98%, weighed by sharp losses in the financial sector.

Shares in HSBC Holdings tumbled 1.01% and Lloyds Banking lost 1.62%, while Barclays and the Royal Bank of Scotland plummeted 2.07% and 2.46%.

Meanwhile, mining stocks turned mostly lower as Glencore Xstrata dropped 0.53% and BHP Billiton retreated 0.98%, while Vedanta Resources and Randgold Resources plunged 2.65% and 3.11% respectively.

In the U.S., equity markets pointed to a lower open. The Dow Jones Industrial Average futures pointed to a 0.16% fall, S&P 500 futures signaled a 0.12% slip, while the Nasdaq 100 futures indicated a 0.10% loss.

Later in the day, the U.S. was to produce data on retail sales, as well as the weekly report on initial jobless claims.


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