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European stocks remain lower on Fed jitters; Dax down 0.66%

Published 08/15/2013, 07:26 AM
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Investing.com - European stocks remained lower on Thursday, despite the previous day's upbeat growth data from the euro zone, as uncertainty over the future of the Federal Reserve's stimulus program continued to weigh on investor confidence.

During European afternoon trade, the EURO STOXX 50 retreated 0.47%, France’s CAC 40 shed 0.42%, while Germany’s DAX 30 dropped 0.66%.

European equities gained ground on Wednesday, after data showed that the euro zone economy returned to growth in the second quarter, emerging from an 18-month recession.

The euro zone economy expanded 0.3% in the three months to June, the fastest quarterly expansion since the first quarter of 2011.

But investors remained cautious after data showed that U.S. producer price inflation was flat in July, while core inflation rose less-than-forecast.

The disappointing data raised fresh doubts over whether the economic recovery is strong enough for the Fed to begin unwinding its USD85 billion-a-month asset purchase program later this year.

Financial stocks turned broadly higher, as French lenders BNP Paribas and Societe Generale rose 0.36% and 1.28%, while Germany's Deutsche Bank inched up 0.05%.

Among peripheral lenders, Spanish banks Banco Santander and BBVA added 0.09% and 0.26% respectively, while Italy's Unicredit and Intesa Sanpaolo gained 0.26% and 0.60%.

Elsewhere, Hennes & Mauritz tumbled 1.63% after saying same-store sales fell 1% in July from the same month a year earlier.

Also among earnings, Oriflame sank 6.24% after reporting earnings of EUR42.2 million in the second quarter, above analysts's estimates, and sales of EUR360 million, below expectations.

In London, commodity-heavy FTSE 100 tumbled 1.05%, weighed by losses in mining stocks, even as official data showed that U.K. retail sales rose much more strongly than expected in July.

Mining giants BHP Billiton and Rio Tinto retreated 0.63% and 2.16% respectively, while Fresnillo and Astrazaneca plunged 2.89% and 3.44%.

Meanwhile, financial stocks remained mostly higher, as shares in Barclays edged 0.08% higher and HSBC Holdings gained 0.56%, while the Royal Bank of Scotland rallied 1.73%. Lloyds Banking underperformed on the other hand, shedding 0.78%.

In the U.S., equity markets pointed to a lower open. The Dow Jones Industrial Average futures pointed to a 0.31% fall, S&P 500 futures signaled a 0.36% loss, while the Nasdaq 100 futures indicated a 0.53% drop.

Later in the day, the U.S. was to release reports on consumer inflation, jobless claims, industrial production and manufacturing data from the Empire state and the Philly Fed.


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