Investing.com - European stock markets erased gains on Wednesday, turning lower as lingering concerns over the outlook for global growth dampened appetite for riskier assets.
During European afternoon trade, the EURO STOXX 50 shed 0.3%, France’s CAC 40 dipped 0.15%, while Germany’s DAX 30 edged down 0.2%.
European equities were higher after the open as markets blew a sigh of relief after the March 20 deadline for Greece to avoid a default passed.
However, worries about Europe's debt crisis remain, amid renewed concerns over the fiscal health of Spain and Portugal and lingering worries over downbeat growth prospects in the region.
Concerns over a deeper-than-expected slowdown in Chinese economic growth, which fuelled sharp losses on Tuesday also continued to weigh.
A deeper slowdown in China, the world’s second biggest economy, would impair a global expansion that is already faltering because of the implementation of harsh austerity measures in Europe.
Italian lenders came under heavy selling pressure, as investors looked ahead to a vote of confidence in Italy later in the day, which would allow Prime Minister Mario Monti’s government to press ahead with legislation to reform the country’s labor market.
Italy’s biggest labor union, CGIL, was likely to call an eight-hour strike against the labor reform proposals according to a union official.
Unicredit shares dropped 2.4% and Intesa Sanpaolo declined 1.5%. Spanish lenders also contributed to losses, with Banco Santander down 1.35% and BBVA slumping 1.65%.
Italian insurance giant Assicurazioni Generali saw shares tumble 3.45% after reporting weaker-than-expected 2011 net profit, on the back of significant writedowns on its Greek bond holdings.
German retailers were weaker, with athletic apparel retailer Adidas dropping 1.85% after Morgan Stanley downgraded the stock and METRO shares tumbling 3.85% after HSBC cut the stock to ‘underweight’ from ‘neutral’.
On the upside, France’s biggest computer-services company CapGemini saw shares climb 2.5% in Paris, boosted by stronger-than-expected earnings at its U.S. counterpart, Oracle.
Elsewhere, London’s commodity-heavy FTSE 100 swung between modest gains and losses as investors digested the release of the U.K.’s annual budget statement earlier in the day.
Also Wednesday, the minutes of the Bank of England’s meeting revealed that two policymakers voted for additional easing but the bank left the size of its asset purchase program unchanged at GBP325 billion.
Financial sector stocks declined, with Royal Bank of Scotland shares down 2.2% and Lloyds Banking Group dipping 0.5%.
On the upside, J Sainsbury shares jumped 3.5% after Britain's third-biggest supermarket group beat forecasts for fourth quarter sales growth as it won market share from rivals.
Vodafone Group climbed 1.2% after Goldman Sachs added the mobile-service firm to its conviction buy list.
Meanwhile, shares in Essar Energy rose sharply for a third day after Merrill Lynch forecast on Monday that shares in the power group would more than double. Essar shares were up 2.4%, taking its three-day gain to almost 20%.
In the U.S., equity markets pointed to a mildly higher open. The Dow Jones Industrial Average futures pointed to a gain of 0.15%, S&P 500 futures added 0.1%, while the Nasdaq 100 futures indicated an increase of 0.05%.
Later in the day, the U.S. was to release industry data on existing home sales.
During European afternoon trade, the EURO STOXX 50 shed 0.3%, France’s CAC 40 dipped 0.15%, while Germany’s DAX 30 edged down 0.2%.
European equities were higher after the open as markets blew a sigh of relief after the March 20 deadline for Greece to avoid a default passed.
However, worries about Europe's debt crisis remain, amid renewed concerns over the fiscal health of Spain and Portugal and lingering worries over downbeat growth prospects in the region.
Concerns over a deeper-than-expected slowdown in Chinese economic growth, which fuelled sharp losses on Tuesday also continued to weigh.
A deeper slowdown in China, the world’s second biggest economy, would impair a global expansion that is already faltering because of the implementation of harsh austerity measures in Europe.
Italian lenders came under heavy selling pressure, as investors looked ahead to a vote of confidence in Italy later in the day, which would allow Prime Minister Mario Monti’s government to press ahead with legislation to reform the country’s labor market.
Italy’s biggest labor union, CGIL, was likely to call an eight-hour strike against the labor reform proposals according to a union official.
Unicredit shares dropped 2.4% and Intesa Sanpaolo declined 1.5%. Spanish lenders also contributed to losses, with Banco Santander down 1.35% and BBVA slumping 1.65%.
Italian insurance giant Assicurazioni Generali saw shares tumble 3.45% after reporting weaker-than-expected 2011 net profit, on the back of significant writedowns on its Greek bond holdings.
German retailers were weaker, with athletic apparel retailer Adidas dropping 1.85% after Morgan Stanley downgraded the stock and METRO shares tumbling 3.85% after HSBC cut the stock to ‘underweight’ from ‘neutral’.
On the upside, France’s biggest computer-services company CapGemini saw shares climb 2.5% in Paris, boosted by stronger-than-expected earnings at its U.S. counterpart, Oracle.
Elsewhere, London’s commodity-heavy FTSE 100 swung between modest gains and losses as investors digested the release of the U.K.’s annual budget statement earlier in the day.
Also Wednesday, the minutes of the Bank of England’s meeting revealed that two policymakers voted for additional easing but the bank left the size of its asset purchase program unchanged at GBP325 billion.
Financial sector stocks declined, with Royal Bank of Scotland shares down 2.2% and Lloyds Banking Group dipping 0.5%.
On the upside, J Sainsbury shares jumped 3.5% after Britain's third-biggest supermarket group beat forecasts for fourth quarter sales growth as it won market share from rivals.
Vodafone Group climbed 1.2% after Goldman Sachs added the mobile-service firm to its conviction buy list.
Meanwhile, shares in Essar Energy rose sharply for a third day after Merrill Lynch forecast on Monday that shares in the power group would more than double. Essar shares were up 2.4%, taking its three-day gain to almost 20%.
In the U.S., equity markets pointed to a mildly higher open. The Dow Jones Industrial Average futures pointed to a gain of 0.15%, S&P 500 futures added 0.1%, while the Nasdaq 100 futures indicated an increase of 0.05%.
Later in the day, the U.S. was to release industry data on existing home sales.