Investing.com - European stocks turned broadly lower on Wednesday, after upbeat manufacturing and service sector data from the euro zone dampened expectations for the European Central Bank to implement fresh stimulus measures.
During European afternoon trade, the DJ Euro Stoxx 50 slid 0.30%, France’s CAC 40 declined 0.40%, while Germany’s DAX fell 0.29%.
Data earlier showed that the recovery in the euro zone private sector accelerated this month, but pointed to a divergence between Germany and France.
The euro zone manufacturing purchasing managers’ index rose to 53.3 this month from 53.0 in March, compared to expectations for an unchanged reading.
The bloc’s services PMI rose to 53.1 from 52.2 the previous month, better then forecasts for 52.4.
European equities had remained supported after the ECB warned earlier this month that further gains in the euro would trigger additional monetary easing to keep inflation from falling.
On Tuesday, ECB Executive Board member Benoit Coeure said the bank still had room to lower its key interest rates and added that it was "certain" that appreciation of the euro since mid-2012 had contributed to the low level of current inflation in the euro area.
Financial stocks turned mixed, as BNP Paribas (BNPP.PAR) slipped 0.20% and Societe Generale (SOGN.PAR) edged up 0.15% in France, while Germany's Deutsche Bank (DBKGn.XETRA) declined 0.46%.
Among peripheral lenders, Intesa Sanpaolo (ISP.MILAN) climbed 0.52% and Unicredit (CRDI.MILAN) dipped 0.04% in Italy, while BBVA (BBVA.MADRID) gained 0.45% and Banco Santander (SAN.MADRID) slid 0.33% in Spain.
Elsewhere, Ericsson (ERICAs.BS) dove 4.36% after the world’s biggest maker of wireless networks reported sales below analysts' estimates.
In London, FTSE 100 edged down 0.17%, although losses were limited by Associated British Foods (ABF.LSE), up 8.76%, after it said its Primark budget fashion chain will open its first stores in the U.S.
Financial stocks remained mixed, as Lloyds Banking (LLOY.LSE) rose 0.32% and Barclays (BARC.LSE) advanced 0.71%, while the Royal Bank of Scotland (RBS.LSE) dipped 0.03% and HSBC Holdings (HSBA.LSE) dropped 0.56%.
Minings stocks were also mixed, with Glencore Xstrata (GLEN.LSE) down 0.17% and Antofagasta (ANTO.LSE) diving 5.86%, while Bhp Billiton (BLT.LSE) and Rio Tinto (RIO.LSE) edged up 0.08% and 0.12% respectively.
On the downside, ARM Holdings (ARM.LSE) plunged 3.51% after the semiconductor designer reported slower growth in first-quarter revenue from royalties on a decelerating market for high-end smartphones.
Also in the U.K., the minutes of the Bank of England’s April meeting showed a wide range of views over economic slack and the inflation outlook.
In the U.S., equity markets pointed to a steady open. The Dow 30 futures pointed to a 0.03% gain, S&P 500 futures signaled a 0.02% downtick, while the Nasdaq 100 futures indicated a 0.07% slip.
Later in the day, the U.S. was to publish reports on new home sales and manufacturing activity.