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European stocks decline amid growth concerns; Dax down 0.63%

Published 10/10/2014, 03:33 AM
Updated 10/10/2014, 03:33 AM
European stocks slide lower as global growth concerns weigh

Investing.com - European stocks were lower on Friday, as concerns over global economic growth and downbeat data from Germany continued to weigh.

During European morning trade, the DJ Euro Stoxx 50 dropped 0.51%, France’s CAC 40 retreated 0.53%, while Germany’s DAX slid 0.63%.

European equities remained under pressure after a report on Tuesday showing a steep decline in German factory orders in August fuelled fears that the euro zone’s largest economy is falling into a recession.

Market sentiment was also hit after the International Monetary Fund cut its global economic growth forecasts for the third time this year on Tuesday and warned that the recovery remains weak and uneven.

Earlier Friday, official data showed that French industrial production was flat in August, compared to expectations for a 0.2% fall. July's figure was revised to a 0.3% gain from a previously estimated 0.2% rise.

Financial stocks were mixed, as French lenders BNP Paribas (PARIS:BNPP) and Societe Generale (PARIS:SOGN) slid 0.13% and 0.74%, while Germany's Deutsche Bank (XETRA:DBKGn) edged up 0.17%.

Among peripheral lenders, Italy's Unicredit (MILAN:CRDI) and Intesa Sanpaolo (MILAN:ISP) eased 0.09% and 0.32% respectively, while BBVA (MADRID:BBVA) fell 0.23% and Banco Santander (MADRID:SAN) rose 0.20% in Spain.

Elsewhere, Norsk Hydro (OSLO:NHY) traded lower for the second consecutive day plummeting 2.32%, after U.S. rival Alcoa (NYSE:AA) reported late Tuesday its highest earnings in three years.

In London, commodity-heavy FTSE 100 declined 0.49%, weighed by sharp losses in the mining sector.

Shares in Glencore Xstrata (LONDON:GLEN) tumbled 1.45% and Rio Tinto (LONDON:RIO) lost 1.75%, while rivals Bhp Billiton (LONDON:BLT) and Fresnillo (LONDON:FRES) plunged 1.47% and 2.14% respectively.

Financial stocks were also mostly lower, as Lloyds Banking (LONDON:LLOY) and Barclays (LONDON:BARC) retreated 0.43% and 0.45%, while the Royal Bank of Scotland (LONDON:RBS) slid 0.39%. HSBC Holdings (LONDON:HSBA) overperformed however, up 0.20%.

Meanwhile, Unilever (LONDON:ULVR) led gains on the index, with shares climbing 0.57% amid reports the consumer goods company is working with the World Resources Institute to bring an end to tropical deforestation through a new partnership that will increase transparency in agricultural commodity supply chains.

In the U.S., equity markets pointed to a mixed open. The Dow 30 futures pointed to a 0.05% gain, S&P 500 futures signaled a 0.10% rise, while the NASDAQ 100 futures indicated a 0.22% fall.

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