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European stocks remain lower in light trade; Dax down 0.35%

Published 08/19/2013, 07:19 AM
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Investing.com - European stocks remained lower in light trade on Monday, as uncertainty over whether the Federal Reserve will soon begin tapering its bong-buying program continued to weigh on market sentiment.

During European afternoon trade, the EURO STOXX 50 retreated 0.79%, France’s CAC 40 shed 0.77%, while Germany’s DAX 30 declined 0.35%.

Investors remained cautious ahead of the minutes of the Fed's July meeting, due out on Wednesday, for further indications as to when the central bank may start to unwind its USD85 billion-a-month asset purchase program.

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

Financial stocks turned broadly lower, as French lenders BNP Paribas and Societe Generale declined 0.92% and 1.45%, while Germany's Deutsche Bank fell 0.38%.

Among peripheral lenders, Spanish banks BBVA and Banco Santander tumbled 0.88% and 1.37% respectively, while Italy's Intesa Sanpaolo and Unicredit plunged 2.88% and 3.39%.

On the upside, Atlas Copco surged 3.89% amid reports a purchase of Edwards Group could be announced as soon as this month.

In London, commodity-heavy FTSE 100 slid 0.41%, weighed by losses in the mining sector.

Mining giants BHP Billiton and Rio Tinto dropped 0.86% and 1.04% respectively, while Evraz and Anglo American plummeted 1.67% and 2.26%.

Meanwhile, U.K. lenders were mixed. Shares in Lloyds Banking edged down 0.07% and HSBC Holdings retreated 0.49%, while Barclays and the Royal Bank of Scotland gained 0.60% and 1.03%.

Elsewhere, Kentz skyrocketed 23.65% following news the Irish provider of engineering and construction services to the oil and gas industry received buyout approaches from companies including Amec Plc and M&W Group.

In the U.S., equity markets pointed to a steady to higher open. The Dow Jones Industrial Average futures pointed to a 0.01% gain, S&P 500 futures signaled a 0.06% rise, while the Nasdaq 100 futures indicated a 0.12% increase.


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