Investing.com - European stocks closed lower Tuesday, as investors weigh the potential of new easing measures from the European Central Bank’s policy meeting , while mixed signals from U.S. economic data depressed share prices.
At the close of European stock trade, the EURO STOXX 50 gave back 0.62%, France’s CAC 40 dropped 0.87%, while Germany’s DAX 30 eased lower by 0.03%.
Markets were eyeing the European Central Bank's policy meeting on Thursday, after ECB President Mario Draghi pledged last week to do whatever was necessary to prevent the euro zone from collapsing.
Draghi's remarks fueled expectations that the ECB may soon reactivate its bond-buying program to help cut Spanish and Italian borrowing costs. Investors remained cautious however, amid concerns that the bank could disappoint market expectations.
Market participants were also looking ahead to the outcome of the Fed’s policy setting meeting on Wednesday, amid speculation over whether the bank will hint at further easing measures.
Meanwhile, helping to support stocks, CB consumer confidence in the U.S. rose unexpectedly last month, data showed on Tuesday.
In a report, research group the Conference Board said that its index of U.S. consumer confidence rose to 65.9, from 62.7 in the preceding month whose figure was revised up from 62.0.
Analysts had expected CB consumer confidence to fall to 61.5 last month.
However, in bearish news, U.S. personal spending remained unchanged unexpectedly last month, official data showed on Tuesday.
The Bureau of Economic Analysis said that personal spending remained unchanged at a seasonally adjusted 0.0%, from -0.1% in the preceding month whose figure was revised down from 0.0%.
Analysts had expected personal spending to rise 0.1% last month.
Financial stocks were mixed, trimming some of the week’s losses, as shares in Italian lender Unicredit climbed 1.49% and France’s BNP Paribas added 0.10%, while Societe Generale and German Deutsche Bank retreated 0.37% and 0.64% respectively.
Earlier in the day, Deutsche Bank said its earnings dropped 46% in the second quarter due to the effects of the euro zone debt crisis on investment banking activity.
Swiss bank UBS remained sharply lower, with shares down 5.22%, after saying that net profit shrank to CHF425 million from CHF1 billion on sharply lower trading revenue and a drop in commissions and fees from clients.
Elsewhere, France-based aerospace supplier Safran dropped 0.50%, although it reported a 30% jump in net profit in the first half of 2012, boosted by rising deliveries of commercial-jet engines and acquisitions.
In London, FTSE 100 declined 0.27%, after data showed that consumer confidence in the U.K. was unchanged in July, despite expectations for a slight improvement.
Oil and gas major BP led losses, with shares tumbling 4.51% after the group reported a loss in the second quarter, due to lower output, falling oil prices and a near USD5.0-billion write down on the value of assets. Rival company Anglo American was up 0.13%.
Financial stocks pushed lower, as shares in Barclays plunged 2.07% and the Royal Bank of Scotland declined 1.89%, while HSBC Holdings and Lloyds Banking dropped 1.36% and 1.22% respectively.
On the upside, Vedanta Resources surged 4.18%, while rival mining groups BHP Billiton and Rio Tinto rose 0.03% and 1.02%.
Vodafone also gained 1.07%, following reports the phone company marked its GBP1.04 billion takeover of Cable & Wireless Worldwide by ousting the firm’s chief executive, Gavin Darby, for the second time.
In the U.S., equity markets followed lower with the Dow off 0.36%, the broad based S&P 500 down 0.32% and the tech heavy Nasdaq down 0.02%
Investors are awaiting the ADP non farm employment numbers, the interest rate decision and FOMC statement as well as the ISM figures from the United States on Wednesday.
At the close of European stock trade, the EURO STOXX 50 gave back 0.62%, France’s CAC 40 dropped 0.87%, while Germany’s DAX 30 eased lower by 0.03%.
Markets were eyeing the European Central Bank's policy meeting on Thursday, after ECB President Mario Draghi pledged last week to do whatever was necessary to prevent the euro zone from collapsing.
Draghi's remarks fueled expectations that the ECB may soon reactivate its bond-buying program to help cut Spanish and Italian borrowing costs. Investors remained cautious however, amid concerns that the bank could disappoint market expectations.
Market participants were also looking ahead to the outcome of the Fed’s policy setting meeting on Wednesday, amid speculation over whether the bank will hint at further easing measures.
Meanwhile, helping to support stocks, CB consumer confidence in the U.S. rose unexpectedly last month, data showed on Tuesday.
In a report, research group the Conference Board said that its index of U.S. consumer confidence rose to 65.9, from 62.7 in the preceding month whose figure was revised up from 62.0.
Analysts had expected CB consumer confidence to fall to 61.5 last month.
However, in bearish news, U.S. personal spending remained unchanged unexpectedly last month, official data showed on Tuesday.
The Bureau of Economic Analysis said that personal spending remained unchanged at a seasonally adjusted 0.0%, from -0.1% in the preceding month whose figure was revised down from 0.0%.
Analysts had expected personal spending to rise 0.1% last month.
Financial stocks were mixed, trimming some of the week’s losses, as shares in Italian lender Unicredit climbed 1.49% and France’s BNP Paribas added 0.10%, while Societe Generale and German Deutsche Bank retreated 0.37% and 0.64% respectively.
Earlier in the day, Deutsche Bank said its earnings dropped 46% in the second quarter due to the effects of the euro zone debt crisis on investment banking activity.
Swiss bank UBS remained sharply lower, with shares down 5.22%, after saying that net profit shrank to CHF425 million from CHF1 billion on sharply lower trading revenue and a drop in commissions and fees from clients.
Elsewhere, France-based aerospace supplier Safran dropped 0.50%, although it reported a 30% jump in net profit in the first half of 2012, boosted by rising deliveries of commercial-jet engines and acquisitions.
In London, FTSE 100 declined 0.27%, after data showed that consumer confidence in the U.K. was unchanged in July, despite expectations for a slight improvement.
Oil and gas major BP led losses, with shares tumbling 4.51% after the group reported a loss in the second quarter, due to lower output, falling oil prices and a near USD5.0-billion write down on the value of assets. Rival company Anglo American was up 0.13%.
Financial stocks pushed lower, as shares in Barclays plunged 2.07% and the Royal Bank of Scotland declined 1.89%, while HSBC Holdings and Lloyds Banking dropped 1.36% and 1.22% respectively.
On the upside, Vedanta Resources surged 4.18%, while rival mining groups BHP Billiton and Rio Tinto rose 0.03% and 1.02%.
Vodafone also gained 1.07%, following reports the phone company marked its GBP1.04 billion takeover of Cable & Wireless Worldwide by ousting the firm’s chief executive, Gavin Darby, for the second time.
In the U.S., equity markets followed lower with the Dow off 0.36%, the broad based S&P 500 down 0.32% and the tech heavy Nasdaq down 0.02%
Investors are awaiting the ADP non farm employment numbers, the interest rate decision and FOMC statement as well as the ISM figures from the United States on Wednesday.