Investing.com - European stocks moved lower in midday trade on Wednesday as talk of tapering the European Central Bank’s (ECB) quantitative easing plans spooked markets and private sector growth in the euro zone hit a 20-month low and retail sales in the region gave a mixed read.
In European midday trade, the Euro Stoxx 50 fell 0.82%, France’s CAC 40 traded down 0.82%, while Germany’s DAX 30 lost 0.77%.
A report from Bloomberg citing unnamed ECB officials said that the euro area’s central bank would probably wind down its €80 billion ($90 billion) monthly bond purchases gradually before ending its quantitative easing program, which is currently scheduled to end in March 2017.
Markets reacted to the downside with concern over the tapering process, though ECB media officer Michael said the monetary authority had not even discussed the possibility.
On the economic front, the euro zone services purchasing managers’ index (PMI) for September slipped to a 20-month low while the composite PMI, including services and manufacturing, for the third quarter hit its weakest level since the final quarter of 2014.
Retail sales for the region gave a mixed read in August, falling a less-than-expected 0.1% from the prior month, compared to expectations for a 0.3% decline.
However, year-on-year, the 0.6% gain came in far below forecasts for a 1.5% rise.
Meanwhile, oil prices rallied to their highest point since June on bullish bets for U.S. stockpile data to be released later on Wednesday.
Even so, energy stocks were mostly higher, though French oil and gas major Total SA (PA:TOTF) fell 1.00%. Italy’s ENI (MI:ENI) advanced 1.31%, while Norwegian rival Statoil (OL:STL) climbed 0.96%.
Financial stocks were mixed, as French lenders BNP Paribas (PA:BNPP) and Societe Generale (PA:SOGN) jumped 1.69% and 1.34%, while Germany’s Deutsche Bank (DE:DBKGn) added 0.55%. Commerzbank (DE:CBKG), however, slumped 1.24%.
Among peripheral lenders, Italy’s Intesa Sanpaolo (MI:ISP) and Unicredit (MI:CRDI) gained 1.30% and 0.80% respectively, while Spanish banks BBVA (MC:BBVA) and Banco Santander (MC:SAN) advanced 0.83% and 0.20%.
In London, commodity-heavy FTSE 100 fell 0.40%, as the companies in the mining sector showed mixed trade.
Shares in Glencore (LON:GLEN) lost 1.43% , while BHP Billiton (LON:BLT) gave up 0.33%. However, Anglo American (LON:AAL) and Rio Tinto (LON:RIO) gained 1.54% and 0.41%, respectively.
Energy stocks added to gains, as BP (LON:BP) advanced 0.19% and rival Royal Dutch Shell (LON:RDSa) rose 0.72%.
Financial stocks showed mixed trade, with shares in HSBC Holdings (LON:HSBA) and Barclays (LON:BARC) up 0.19% and 0.20%, while Royal Bank of Scotland (LON:RBS) fell 0.85%, and Lloyds Banking (LON:LLOY) lost 1.31%.
In the U.S., equity markets pointed to a flat to lower open. The Dow Jones Industrial Average futures pointed to a 0.07% drop, S&P 500 futures a 0.01% decrease, while the Nasdaq 100 futures indicated a 0.01% decline.