Investing.com - European stock markets turned lower on Tuesday, as a flurry of weak economic data from the euro zone sparked new concerns over a potential recession in the single currency bloc.
During European afternoon trade, the EURO STOXX 50 slumped 0.63%, France’s CAC 40 dropped 0.53%, while Germany’s DAX 30 retreated 0.21%.
Stocks were hit after official data confirmed that the euro zone’s economy contracted by 0.3% in the final three months of 2011, unchanged from a preliminary estimate. Annualized gross domestic product contracted by 0.7% in the fourth quarter.
A separate report showed that producer price inflation in the euro zone rose more-than-expected in February, climbing 0.6%, slightly higher than expectations for a 0.5% gain.
Data on Monday showed that manufacturing activity in the euro zone remained in contraction territory for the eighth successive month in March, while a separate report showed that the bloc’s unemployment rate ticked up to a record high of 10.8% in February.
Financial stocks remained broadly lower, led by Italian lender Intesa Sanpaolo, down 3.90%, closely followed by Unicredit whose shares plunged 3.30%.
Meanwhile, France’s BNP Paribas and Societe Generale tumbled 1.71% and 1.50%, while German lenders Deutsche Bank and Commerzbank saw shares plummet 1.09% and 2.30% respectively.
French caterer Sodexo contributed to losses, plunging 2.35% after Morgan Stanley lowered its recommendation for the company’s shares to underweight, the equivalent of sell, from equal weight.
On the upside, UCB SA gained 3.16% after the Belgian drug maker said that the U.S. Food and Drug Administration approved its Neupro medicine for the treatment of advanced stage idiopathic Parkinson’s disease.
In London, FTSE 100 fell 0.24%, weighed by sharp losses in the financial sector while data showed that activity in the U.K. construction sector expanded at the fastest rate in 21 months in March, fuelling hopes that the country’s economy may avoid a recession.
The Royal Bank of Scotland was among the session’s top losers, with shares sinking 2.92%, while Barclays tumbled 1.89%, Lloyds banking declined 1.52% and HSBC Holdings added 0.15%.
Meanwhile, shares in U.K. oil explorer Cairn surged 4.98%.
The company agreed earlier to buy Agora, a private Norwegian company with non-operated, exploration, appraisal and development assets in the U.K. and Norwegian North Sea, in a cash and stock deal.
In the U.S., equity markets pointed to a lower open. The Dow Jones Industrial Average futures pointed to a fall of 0.18%, S&P 500 futures signaled a 0.16% decline, while the Nasdaq 100 futures indicated a 0.01% loss.
Later in the day, the U.S. was to produce official data on factory orders, while the Federal Reserve was to release the minutes of its most recent policy meeting.
During European afternoon trade, the EURO STOXX 50 slumped 0.63%, France’s CAC 40 dropped 0.53%, while Germany’s DAX 30 retreated 0.21%.
Stocks were hit after official data confirmed that the euro zone’s economy contracted by 0.3% in the final three months of 2011, unchanged from a preliminary estimate. Annualized gross domestic product contracted by 0.7% in the fourth quarter.
A separate report showed that producer price inflation in the euro zone rose more-than-expected in February, climbing 0.6%, slightly higher than expectations for a 0.5% gain.
Data on Monday showed that manufacturing activity in the euro zone remained in contraction territory for the eighth successive month in March, while a separate report showed that the bloc’s unemployment rate ticked up to a record high of 10.8% in February.
Financial stocks remained broadly lower, led by Italian lender Intesa Sanpaolo, down 3.90%, closely followed by Unicredit whose shares plunged 3.30%.
Meanwhile, France’s BNP Paribas and Societe Generale tumbled 1.71% and 1.50%, while German lenders Deutsche Bank and Commerzbank saw shares plummet 1.09% and 2.30% respectively.
French caterer Sodexo contributed to losses, plunging 2.35% after Morgan Stanley lowered its recommendation for the company’s shares to underweight, the equivalent of sell, from equal weight.
On the upside, UCB SA gained 3.16% after the Belgian drug maker said that the U.S. Food and Drug Administration approved its Neupro medicine for the treatment of advanced stage idiopathic Parkinson’s disease.
In London, FTSE 100 fell 0.24%, weighed by sharp losses in the financial sector while data showed that activity in the U.K. construction sector expanded at the fastest rate in 21 months in March, fuelling hopes that the country’s economy may avoid a recession.
The Royal Bank of Scotland was among the session’s top losers, with shares sinking 2.92%, while Barclays tumbled 1.89%, Lloyds banking declined 1.52% and HSBC Holdings added 0.15%.
Meanwhile, shares in U.K. oil explorer Cairn surged 4.98%.
The company agreed earlier to buy Agora, a private Norwegian company with non-operated, exploration, appraisal and development assets in the U.K. and Norwegian North Sea, in a cash and stock deal.
In the U.S., equity markets pointed to a lower open. The Dow Jones Industrial Average futures pointed to a fall of 0.18%, S&P 500 futures signaled a 0.16% decline, while the Nasdaq 100 futures indicated a 0.01% loss.
Later in the day, the U.S. was to produce official data on factory orders, while the Federal Reserve was to release the minutes of its most recent policy meeting.