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European stocks remain lower amid Fed jitters; Dax down 0.38%

Published 09/25/2013, 07:26 AM
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Investing.com - European stocks remained lower on Wednesday, despite positive German data as uncertainty over the future of the Federal Reserve's bond-buying program continued to dominate market sentiment.

During European afternoon trade, the EURO STOXX 50 declined 0.31%, France’s CAC 40 retreated 0.45%, while Germany’s DAX 30 slid 0.38%.

Data showed that German consumer confidence is seen rising to the highest level since June 2007 in October. The GfK index of German consumer confidence rose to 7.1, while this month’s reading was revised up from 6.9 to 7.

But markets were jittery amid uncertainty over the future direction of U.S. monetary policy after New York Federal Reserve President William Dudley defended last week’s decision by the Fed to keep its stimulus program on track.

European equities had found some support on Tuesday after senior European Central Bank official Ewald Nowotny said it was too soon for the bank to exit from crisis measures.

Financial stocks were mixed, as BNP Paribas climbed 0.61% and Societe Generale slipped 0.17% in France, while Germany's Deutsche Bank retreated 0.69%.

Among peripheral lenders, Spanish banks Banco Santander and BBVA rose 0.22% and 0.31% respectively, while Italy's Intesa Sanpaolo slid 0.41%.

Elsewhere, Nordea Bank plummeted 2.78% as Sweden started selling its remaining 7% stake in the Nordic region’s largest lender.

On the upside, Gas Natural and Enagas rallied 3.57% and 1.19% after Goldman Sachs raised both stocks to "buy" from "neutral", citing the impending review of gas regulation in Spain as positive for both companies.

In London, FTSE 100 shed 0.46%, led by sharp losses in Carnival shares, down 6.73% after the cruise company' said its profit dropped 30% in the third quarter and that bookings so far for the next nine months are lower than in previous years.

Meanwhile, mining stocks remained on the upside, with BHP Billiton and Rio Tinto gaining 0.51% and 0.45% respectively, while Fresnillo jumped 1.85%.

Financial stocks were also mostly higher. The Royal Bank of Scotland saw shares surge 3.27% and Lloyds Banking advanced 0.97%, while Barclays rallied 1.68%. HSBC Holdings was little changed on the other hand, dipping 0.01%.

In the U.S., equity markets pointed to a steady open. The Dow Jones Industrial Average futures pointed to a 0.06% dip, S&P 500 futures signaled a 0.11% fall, while the Nasdaq 100 futures indicated a 0.05% loss.

Later in the day, the U.S. is to release data on durable goods orders, in addition to a report on new home sales.


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