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European stocks turn lower despite service sector data; Dax down 0.02%

Published 12/04/2013, 07:18 AM
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Investing.com - European stocks turned broadly lower on Wednesday, despite positive euro zone service sector data, as concerns the Federal Reserve will soon begin tapering its monthly asset purchases weighed.

During European afternoon trade, the EURO STOXX 50 slipped 0.27%, France’s CAC 40 edged down 0.12%, while Germany’s DAX 30 inched 0.02% lower.

Markit research group said that the euro zone's final services purchasing managers' index inched up to 51.2 in November, up from a preliminary reading of 50.9 and compared to 51.6 in October.

Germany's services PMI rose to 55.7 in November, up from a preliminary reading of 54.5 and compared to 52.9 in October.

A separate report showed that retail sales in the euro zone fell 0.2% in October, confounding expectations for a 0.3% rise, after a 0.6% decline the previous month.

Meanwhile, speculation over the future of the Fed's stimulus program persisted after the Institute for Supply Management said Monday that manufacturing activity in the U.S. expanded at the fastest rate since April 2011 in November, fuelling optimism over the economic recovery.

Financial stocks were mixed after the European Commission imposed a EUR1.71 billion fine on some of the world's largest banks for interest rate-rigging by traders. The banks to be fined are Citigroup, Deutsche Bank, Royal Bank of Scotland, JPMorgan and Societe Generale.

French lenders BNP Paribas and Societe Generale declined 0.68% and 1.07%, while Germany's Deutsche Bank dipped 0.03%.

Among peripheral lenders, BBVA slid 0.37% and Banco Santander added 0.18% Spain, while Italy's Intesa Sanpaolo and Unicredit gained 0.61% and 0.63% respectively.

Elsewhere, Elekta plummeted 4.09% after the maker of radiation-surgery equipment posted quarterly profit that missed forecasts.

In London, FTSE 100 fell 0.18%, after data showed that the U.K. service sector expanded at a slower pace than expected last month.

U.K. lenders tracked their European counterparts lower, as Lloyds Banking slipped 0.28% and HSBC Holdings tumbled 1.23%, while Barclays lost 1.32%. The Royal Bank of Scotland overperformed however, up 0.35%.

Tesco erased earlier gains and dropped 0.70% after the supermarket chain said U.K. same-store sales fell 1.5% in the fiscal third quarter, matching analysts’ estimates.

In the U.S., equity markets pointed to a moderately higher open. The Dow Jones Industrial Average futures pointed to a 0.08% rise, S&P 500 futures signaled a 0.01% gain, while the Nasdaq 100 futures indicated a 0.11% increase.

Later in the day, the U.S. was to release the ADP report on private sector job creation, as well as data on new home sales and the trade balance. In addition, the Institute of Supply Management was to release its services PMI.


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