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European stocks slip lower in light trade; Dax down 0.10%

Published 07/22/2013, 03:42 AM
Updated 07/22/2013, 03:44 AM
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Investing.com - European stocks slipped lower in light trade on Monday, as growing expectations for a near-term end to the Federal Reserve's stimulus program continued to weigh on global equities.

During European morning trade, the EURO STOXX 50 fell 0.10%, France’s CAC 40 slipped 0.24%, while Germany’s DAX 30 edged down 0.10%.

Stocks came under pressure after Fed Chairman Ben Bernanke said last week that the central bank could scale back its asset purchases by the end of the year if the economy continues to improve, but added that there was no “preset course.”

Bernanke said the economic recovery was continuing at a moderate pace but reiterated that monetary policy will remain accommodative for the foreseeable future.

Financial stocks were broadly higher, as French lenders BNP Paribas and Societe Generale rose 0.18% and 0.79%, while Germany's Deutsche Bank jumped 1.30%.

Peripheral lenders added to gains, with Spanish banks Banco Santander and BBVA adding 0.24% and 0.29% respectively, while Italy's Unicredit and Intesa Sanpaolo advanced 0.36% and 0.53%.

Among earnings, Switzerland’s largest bank, UBS, reported an increase in second-quarter profit and said it’s close to a settlement over U.S. mortgage-backed bond sales, sending shares up 2.95%.

Royal Philips Electronics also gained ground, up 3.33%, after reporting that second-quarter profit jumped 30% as a EUR1.1 billion savings program helped offset a consumer slowdown in Europe.

In London, FTSE 100 slipped 0.25%.

Financial stocks were mixed, as shares in HSBC Holdings and Lloyds Banking fell 0.36% and 0.10%, while Barclays and the Royal Bank of Scotland climbed 0.42% and 1.78%.

Meanwhile, mining stocks were broadly higher, with BHP Billiton and Anglo American adding 0.24% and 0.15% respectoively, while Fresnillo and Randgold Resources soared 2.96% and 6.47%.

In the U.S., equity markets pointed to a steady open. The Dow Jones Industrial Average futures pointed to a 0.08% loss, S&P 500 futures signaled a 0.03% dip, while the Nasdaq 100 futures indicated a 0.02% gain.

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


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