Investing.com - European stocks were sharply lower on Thursday, after the release of globaly negative data from France and Germany, while speculation the Federal Reserve's may reduce its bond-buying program sooner than expected weighed.
During European morning trade, the EURO STOXX 50 tumbled 1.49%, France’s CAC 40 retreated 1.47%, while Germany’s DAX 30 declined 1.47%.
Market research group Markit said that its preliminary French manufacturing purchasing managers’ index rose less-than-expected to a seasonally adjusted 43.6 in February from a final reading of 42.9 in January, while service sector activity in France fell to a 48-month low of 42.7.
Separately, Markit said that its preliminary German manufacturing PMI rose to a seasonally adjusted 50.1 in February from a final reading of 49.8 in January. Analysts had expected the index to ease up to 50.5 in February.
Service sector activity in Germany expanded at the slowest rate in two months in February.
Sentiment had weakened earlier, after the minutes of the Fed’s January meeting showed that policymakers discussed the slowing or stopping of bond purchases even before the job market improves, amid concerns that the policy could cause instability in financial markets.
Financial stocks were broadly lower, as French lenders BNP Paribas and Societe Generale tumbled 2.74% and 2.93%, while Germany's Deutsche Bank and Commerzbank plummeted 3.78% and 2.11%.
Peripheral lenders were also sharply lower, with Spanish banks BBVA and Banco Santander plunging 2.11% and 1.88%, while Italy's Intesa Sanpaolo and Unicredit dove 3.34% and 3.31% respectively.
Elsewhere, Axa shed 3.14% after Europe’s second-largest insurer reported net income that unexpectedly declined in 2012.
In London, commodity-heavy FTSE 100 tumbled 1.34%, weighed by losses in mining stocks.
Mining giants Rio Tinto and BHP Billiton plummeted 2.65% and 3.03%, while shares in copper producers Xstrata and Kazakhmys retreated 2.98% and 4.03%.
Oil and gas major Anglo American added to losses, declining 1.29%, while shares in rival company BP slid 1.11%.
Meanwhile, financial stocks also trended lower. Barclays tumbled 1.71% and HSBC Holdings shed 1.66%, while the Royal Bank of Scotland and Lloyds Banking plunged 2.15% and 2.23% respectively.
In the U.S., equity markets pointed to a lower open. The Dow Jones Industrial Average futures pointed to a 0.24% fall, S&P 500 futures signaled a 0.21% decline, while the Nasdaq 100 futures indicated a 0.33% loss.
Later in the day, the U.S. was to release official data on consumer price inflation as well as the weekly government report on initial jobless claims. The U.S. was also to publish industry data on existing home sales and a report on manufacturing activity in Philadelphia.
During European morning trade, the EURO STOXX 50 tumbled 1.49%, France’s CAC 40 retreated 1.47%, while Germany’s DAX 30 declined 1.47%.
Market research group Markit said that its preliminary French manufacturing purchasing managers’ index rose less-than-expected to a seasonally adjusted 43.6 in February from a final reading of 42.9 in January, while service sector activity in France fell to a 48-month low of 42.7.
Separately, Markit said that its preliminary German manufacturing PMI rose to a seasonally adjusted 50.1 in February from a final reading of 49.8 in January. Analysts had expected the index to ease up to 50.5 in February.
Service sector activity in Germany expanded at the slowest rate in two months in February.
Sentiment had weakened earlier, after the minutes of the Fed’s January meeting showed that policymakers discussed the slowing or stopping of bond purchases even before the job market improves, amid concerns that the policy could cause instability in financial markets.
Financial stocks were broadly lower, as French lenders BNP Paribas and Societe Generale tumbled 2.74% and 2.93%, while Germany's Deutsche Bank and Commerzbank plummeted 3.78% and 2.11%.
Peripheral lenders were also sharply lower, with Spanish banks BBVA and Banco Santander plunging 2.11% and 1.88%, while Italy's Intesa Sanpaolo and Unicredit dove 3.34% and 3.31% respectively.
Elsewhere, Axa shed 3.14% after Europe’s second-largest insurer reported net income that unexpectedly declined in 2012.
In London, commodity-heavy FTSE 100 tumbled 1.34%, weighed by losses in mining stocks.
Mining giants Rio Tinto and BHP Billiton plummeted 2.65% and 3.03%, while shares in copper producers Xstrata and Kazakhmys retreated 2.98% and 4.03%.
Oil and gas major Anglo American added to losses, declining 1.29%, while shares in rival company BP slid 1.11%.
Meanwhile, financial stocks also trended lower. Barclays tumbled 1.71% and HSBC Holdings shed 1.66%, while the Royal Bank of Scotland and Lloyds Banking plunged 2.15% and 2.23% respectively.
In the U.S., equity markets pointed to a lower open. The Dow Jones Industrial Average futures pointed to a 0.24% fall, S&P 500 futures signaled a 0.21% decline, while the Nasdaq 100 futures indicated a 0.33% loss.
Later in the day, the U.S. was to release official data on consumer price inflation as well as the weekly government report on initial jobless claims. The U.S. was also to publish industry data on existing home sales and a report on manufacturing activity in Philadelphia.