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European stocks lower after German PMI data; DAX down 0.44%

Published 02/22/2012, 03:58 AM
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Investing.com - European stock markets were lower on Wednesday, after disappointing German economic data while uncertainty over Greece’s ability to overcome its debt crisis despite a new bailout weighed.

During European morning trade, the EURO STOXX 50 fell 0.40%, France’s CAC 40 edged down 0.11%, while Germany’s DAX 30 dropped 0.44%.

In a preliminary report, Markit research group said earlier that Germany’s manufacturing purchasing managers’ index declined unexpectedly to 50.1 in February from 51.0 the previous month, while the country’s services PMI also declined unexpectedly to 52.6 from 53.7 in January.

Meanwhile, markets were jittery amid uncertainty over Greece’s ability to implement the terms of a EUR130 billion bailout package approved by euro zone finance ministers early Tuesday morning.

Financial stocks were mixed as shares in French lender BNP Paribas climbed 0.48% after a report said it may sell its 51% stake in Klepierre, while Germany’s Deutsche Bank and Commerzbank tumbled 1.30% and 1.12% respectively.

Meanwhile, Nexity, the French real-estate services company, dropped 2.95% as it forecast a “trough year” in 2012 for the new homes market and a slowdown for commercial real estate. The company’s full-year net income slumped to EUR54.2 million from EUR119.8 million in 2010.

Straumann Holding AG, the world’s biggest maker of dental implants, also declined 9.87% after full-year profit missed analysts’ estimates.

On the upside, Accor, Europe’s biggest hotel company, climbed 4.56% after full-year profit rose 19%.

In London, FTSE 100 fell 0.12%, despite gains in the financial sector.
Shares in the Royal Bank of Scotland jumped 1.63% and Lloyds Banking climbed 0.78%, while HSBC Holdings added 0.06%.

Mining giants mining giants Rio Tinto and Bhp Billiton were on the upside, both rising 0.26%, while copper producers Xstrata advanced 0.29%.

In the U.S., equity markets pointed to a moderately higher open. The Dow Jones Industrial Average futures pointed to a rise of 0.09%, S&P 500 futures signaled a 0.11% increase, while the Nasdaq 100 futures indicated a 0.22% gain.

Later in the day, the euro zone was to release official data on industrial new orders.

In the U.S., industry data was to be released on existing home sales as well as official data on crude oil stockpiles.


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