Investing.com - European stocks were lower on Wednesday, as concerns over global economic growth continued to weigh on market sentiment, while investors eyed the release of U.S. data later in the day.
During European morning trade, the EURO STOXX 50 dropped 0.59%, France’s CAC 40 declined 0.56%, while Germany’s DAX 30 retreated 0.74%.
Markets were jittery after data on Tuesday showed that the euro zone’s gross domestic product contracted by 0.2% in the three months to June, bringing the annualized rate of contraction to 0.4%.
In addition, the ZEW Centre for Economic Research said that its index of German economic sentiment came in at minus 25.5 for August; down from July’s reading of minus 19.6 and defying expectations for a reading of minus 19.3.
Sentiment remained mildly supported however by expectations that recent evidence of a slowdown in economic growth would prompt world central banks to implement more easing measures to spur the economic recovery.
Financial stocks were broadly lower, as shares in French lenders BNP Paribas and Societe Generale declined 0.09% and 0.19% respectively, while Germany’s Deutsche Bank and Commerzbank dropped 0.56% and 0.93%.
Banks in Italy remained closed due to a national holiday.
Elsewhere, Carlsberg tumbled 2.74%, as the world’s fourth-largest brewer said earnings before interest, tax and some one-time items fell 6.1% in the second quarter.
In London, FTSE 100 slid 0.63%, as investors eyed minutes of the Bank of England’s most recent policy meeting, later Wednesday.
Mining giants Rio Tinto and BHP Billiton were sharply lower, with shares plunging 4.13% and 1.84%, while rival company Vedanta Resources plummeted 3.46%.
Oil and gas major Anglo American also saw shares decline 2.94%, while BP retreated 0.67%.
Meanwhile, Kazakh metals producer Eurasian Natural Resources tumbled 2.58%, as first-half sales of USD3.25 billion missed estimates and after the company said the market is going to remain volatile with uncertain pricing.
In the financial sector, Standard Chartered advanced 2.83% following reports it settled a New York money laundering probe for USD340 million, a day before the bank was to appear at a hearing to defend its right to continue operating in the state.
The U.K. lender still faces federal probes over allegations it helped Iran funnel money through the U.S.
Other U.K. banks were broadly lower. Shares in Lloyds Banking eased 0.09% and the Royal Bank of Scotland dropped 0.89%, while Barclays and HSBC Holdings plummeted 1.22% and 1.51%.
In the U.S., equity markets pointed to a lower open. The Dow Jones Industrial Average futures pointed to a 0.16% fall, S&P 500 futures signaled a 0.20% decline, while the Nasdaq 100 futures indicated a 0.19% loss.
Later in the day, the U.S. was to release official data on consumer price inflation and industrial production, as well as a report on manufacturing activity in the New York area.
During European morning trade, the EURO STOXX 50 dropped 0.59%, France’s CAC 40 declined 0.56%, while Germany’s DAX 30 retreated 0.74%.
Markets were jittery after data on Tuesday showed that the euro zone’s gross domestic product contracted by 0.2% in the three months to June, bringing the annualized rate of contraction to 0.4%.
In addition, the ZEW Centre for Economic Research said that its index of German economic sentiment came in at minus 25.5 for August; down from July’s reading of minus 19.6 and defying expectations for a reading of minus 19.3.
Sentiment remained mildly supported however by expectations that recent evidence of a slowdown in economic growth would prompt world central banks to implement more easing measures to spur the economic recovery.
Financial stocks were broadly lower, as shares in French lenders BNP Paribas and Societe Generale declined 0.09% and 0.19% respectively, while Germany’s Deutsche Bank and Commerzbank dropped 0.56% and 0.93%.
Banks in Italy remained closed due to a national holiday.
Elsewhere, Carlsberg tumbled 2.74%, as the world’s fourth-largest brewer said earnings before interest, tax and some one-time items fell 6.1% in the second quarter.
In London, FTSE 100 slid 0.63%, as investors eyed minutes of the Bank of England’s most recent policy meeting, later Wednesday.
Mining giants Rio Tinto and BHP Billiton were sharply lower, with shares plunging 4.13% and 1.84%, while rival company Vedanta Resources plummeted 3.46%.
Oil and gas major Anglo American also saw shares decline 2.94%, while BP retreated 0.67%.
Meanwhile, Kazakh metals producer Eurasian Natural Resources tumbled 2.58%, as first-half sales of USD3.25 billion missed estimates and after the company said the market is going to remain volatile with uncertain pricing.
In the financial sector, Standard Chartered advanced 2.83% following reports it settled a New York money laundering probe for USD340 million, a day before the bank was to appear at a hearing to defend its right to continue operating in the state.
The U.K. lender still faces federal probes over allegations it helped Iran funnel money through the U.S.
Other U.K. banks were broadly lower. Shares in Lloyds Banking eased 0.09% and the Royal Bank of Scotland dropped 0.89%, while Barclays and HSBC Holdings plummeted 1.22% and 1.51%.
In the U.S., equity markets pointed to a lower open. The Dow Jones Industrial Average futures pointed to a 0.16% fall, S&P 500 futures signaled a 0.20% decline, while the Nasdaq 100 futures indicated a 0.19% loss.
Later in the day, the U.S. was to release official data on consumer price inflation and industrial production, as well as a report on manufacturing activity in the New York area.