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European stocks remain lower ahead of Fed minutes; Dax down 0.20%

Published 08/21/2013, 07:20 AM
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Investing.com - European stocks remained lower on Wednesday, as investors were cautious ahead of the minutes of the Federal Reserve's latest policy meeting as uncertainty over the future of the bank's bond-buying program persisted.

During European afternoon trade, the EURO STOXX 50 shed 0.39%, France’s CAC 40 rose 0.22%, while Germany’s DAX 30 dipped 0.03%.

Investors were eyeing the minutes of the Fed’s July meeting, due out on Wednesday, for further indications as to when the central bank may start to taper its USD85 billion-a-month stimulus program.

Expectations that the Fed may begin tapering as soon as next month were boosted after data last week showed that U.S. weekly jobless claims fell to an almost six year low.

Fed Chairman Ben Bernanke has said that the decision to start tapering will depend on whether economic data is strong enough.

Financial stocks turned mostly lower, as French lender BNP Paribas rose 0.28%, while Societe Generale slid 0.34% and Germany's Deutsche Bank tumbled 1.46%.

Among peripheral lenders, Spanish banks Banco Santander and BBVA declined 0.72% and 0.64% respectively, while Italy's Intesa Sanpaolo and Unicredit slumped 1.03% and 1.32%.

Elsewhere, Heineken saw shares plunge 3.08% after the world's third-biggest brewer said a poor spring in Europe will hold back revenue this year.

In the same sector, Carlsberg reported second-quarter profit that missed estimates as it lowered its forecast for the Russian market this year. Shares jumped 1.51%, erasing earlier losses.

In London, FTSE 100 dropped 0.56%, even as data showed that U.K. industrial orders rose to a one year high in August, boosting the outlook for the economic recovery.

Financial stocks remained mostly lower, as shares in Barclays retreated 0.90% and the Royal Bank of Scotland lost 0.92%, while HSBC Holdings plummeted 2.74%. Lloyds Banking overperformed however, rallying 1.37%.

Meanwhile, mining companies remained mixed, with BHP Billiton and Fresnillo tumbled 2.26% and 2.45% respectively, while Glencore Xstrata jumped 1.27%.

In the U.S., equity markets pointed to a lower open. The Dow Jones Industrial Average futures pointed to a 0.25% fall, S&P 500 futures signaled a 0.29% loss, while the Nasdaq 100 futures indicated a 0.34% decline.

Later in the day, the U.S. was to release private sector data on new home sales.


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