Investing.com - European stocks were sharply lower on Thursday, after the release of mixed manufacturing and service sector data from Germany and France and as a report from China failed to lift market sentiment.
During European morning trade, the DJ Euro Stoxx 50 slid 0.37%, France’s CAC 40 retreated 0.59%, while Germany’s DAX declined 0.44%.
Markit research group said that Germany's manufacturing PMI rose to 51.8 this month from 49.9 in September, beating expectations for a fall to 49.5.
Germany's services PMI fell to 54.8 in September from 55.7 last month, compared to expectations for a slip to 55.0.
Markit also said that France's manufacturing PMI fell to 47.3 this month from 48.8 in September, disappointing expectations for a reading of 48.2.
France's services PMI slipped to 48.1 in October from 48.4 last month, compared to expectations for a fall to 48.2.
In China, data earlier showed that the HSBC manufacturing PMI edged up to 50.4 this month from 50.2 last month, above forecasts for 50.3.
However the report also showed that factory output fell to a five month low this month, adding to concerns over slowing global growth.
Financial stocks were broadly lower, as French lenders BNP Paribas (PARIS:BNPP) and Societe Generale (PARIS:SOGN) tumbled 1.06% and 1.43%, while Germany's Deutsche Bank (XETRA:DBKGn) declined 0.40%.
Among peripheral lenders, Italy's Intesa Sanpaolo (MILAN:ISP) and Unicredit (MILAN:CRDI) retreated 0.48% and 0.73% respectively, while Spanish banks BBVA (MADRID:BBVA) and Banco Santander (MADRID:SAN) dropped 0.99% and 1.09%.
Elsewhere, Michelin (PARIS:MICP) saw shares plunge 4.88% after the tiremaker said third-quarter sales dropped more than expected to €4.89 billion.
In London, FTSE 100 lost 0.84%, led by Tesco (LONDON:TSCO), down 5.66% after the grocer said that accounting irregularities have gone on longer than initially reported. It also announced that Chairman Richard Broadbent is preparing to leave.
Unilever (LONDON:ULVR) added to losses, with shares plummeting 3.99% after the consumer goods company said underlying sales rose 2.1% in the third quarter, compared to expectations for growth of 3.9%.
Meanwhile, U.K. lenders tracked their European counterparts lower. Shares in Barclays (LONDON:BARC) slid 0.32% and Lloyds Banking (LONDON:LLOY) declined 0.65%, while the Royal Bank of Scotland (LONDON:RBS) and HSBC Holdings (LONDON:HSBA) retreated 0.71% and 0.93% respectively.
In the U.S., equity markets pointed to a moderately higher open. The Dow 30 futures pointed to a 0.12% rise, S&P 500 futures signaled a 0.14% increase, while the NASDAQ 100 futures indicated a 0.11% gain.
Later in the day, the euro zone was to release preliminary data on private sector activity, while the U.S. was to publish its weekly report on initial jobless claims.