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European stocks turn lower on German data, U.S. worries; Dax down 0.18%

Published 10/08/2013, 07:18 AM
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Investing.com - European stocks turned broadly lower on Tuesday, after the release of disappointing German factory orders data and as sustained concerns over the handling of U.S. budget negotiations continued to weigh on investor confidence.

During European afternoon trade, the EURO STOXX 50 fell 0.25%, France’s CAC 40 declined 0.43%, while Germany’s DAX 30 slipped 0.18%.

Official data showed that German factory orders unexpectedly fell 0.3% in August, following a 1.9% drop in July. Analysts had been expecting a gain of 1.2%.

In the U.S., President Barack Obama repeated Monday that he is willing to negotiate with congressional Republicans on a range of topics, including healthcare and energy policy, but only after the government is reopened.

Mr. Obama also called on Congress to raise the government borrowing limit ahead of the October 17 deadline, the date which the Treasury Department has estimated the U.S. could risk a default.

Financial stocks turned lower, as French lenders BNP Paribas and Societe Generale retreated 0.55% and 1.07%, while Germany's Deutsche Bank slid 0.38%.

Among peripheral lenders, Spanish banks Banco Santander and BBVA shed 0.32% and 0.93% respectively, while Italy's Unicredit tumbled 1.12%.

Adding to losses, Novartis shed 0.96% after JPMorgan Chase cut its recommendation on the drugmaker to "neutral" from "overweight".

Elsewhere, Alcatel-Lucent rallied 1.42% after the telecoms equipment maker announced plans to reduce its staff by 10,000 as part of a strategy to save EUR1 billion in costs.

In London, commodity-heavy FTSE 100 declined 0.85%, still weighed by losses in mining stocks.

Shares in Glencore Xstrata and Rio Tinto lost 1.55% and 1.67% respectively, while rival companies BHP Billiton and Polymetal plummeted 1.90% and 2.98%.

Financial stocks were also on the downside, with the Royal Bank of Scotland slipping 0.19% and Barclays down 1.33%, while HSBC Holdings and Lloyds Banking slid 0.59% and 1.25%.

In the U.S., equity markets pointed to a steady open. The Dow Jones Industrial Average futures pointed to a 0.03% slip, S&P 500 futures signaled a 0.05% loss, while the Nasdaq 100 futures indicated a 0.02% dip.

Also Tuesday, official showed that Germany's trade surplus widened more-than-expected in August, rising to EUR15.6 billion from an upwardly revised surplus of EUR15 billion the previous month.

Analysts had expected the trade surplus to widen to EUR15.1 billion in August.


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