Investing.com - European shares closed mostly lower Monday, as a combination of ongoing concerns over rising borrowing costs for peripheral euro zone nations and fears over the health of the global economy continued to weigh on market sentiment.
Investors also anticipated Federal Reserve Chairman Ben Bernanke's semi-annual testimony to the U.S. Congress on Tuesday and Wednesday, amid ongoing speculation over whether the central bank will introduce more easing measures to stimulate the economy.
During European afternoon trade, the EURO STOXX 50 declined 0.32%, France’s CAC 40 gave back 0.03%, while Germany’s DAX 30 fought the downtrend climbing 0.13%%.
Market sentiment came under pressure amid uncertainty over whether some bondholders could be forced to accept losses under the terms of Spain's bank bailout.
The yield on Spanish 10-year bonds rose to 6.74%, re-approaching the critical 7% threshold, widely seen as unsustainable in the long run. The yield on Italian 10-year bonds ticked up to 6.07%.
Markets also remained nervous after Germany’s constitutional court announced earlier that it will deliver a ruling on whether the euro zone’s permanent bailout fund contravenes the German constitution on September 12, disappointing hopes for an earlier decision.
In addition, Retail sales in the U.S. fell for the third straight month in June, the first three month consecutive drop since 2008, official data showed on Monday.
Core retail sales declined for the first second consecutive month, adding to concerns the U.S. economic recovery is faltering.
In a report, the U.S. Census Bureau said that retail sales fell by a seasonally adjusted 0.5% in June, confounding expectations for a 0.2% increase.
Retail sales in May fell by an unrevised 0.2%.
Investors were also looking ahead to a testimony by Federal Reserve Chairman Ben Bernanke later in the week. Bernanke testifies to the Senate Banking Committee on Tuesday and to the House Financial Services panel on Wednesday.
Elsewhere, Chinese Premier Wen Jiabao warned over the weekend that China's economy has not yet entered a recovery and "difficulties may continue for some time."
He added that policy makers were likely to introduce measures to boost growth in the second half of the year, according to the state-run Xinhua News Agency.
The comments followed government data released Friday showing China’s second quarter economic growth slowed to 7.6% from a year earlier, compared to 8.1% in the first quarter.
Shares in Spanish lenders led losses in the financial sector, with Banco Santander shares down 1.6% and BBVA falling 1.55%.
Italian banks were also lower, with Unicredit dropping 1.25% and Intesa Sanpaolo declining 1.2%.
Shares in Nokia contributed to losses, slumping 2% after the firm cut the U.S. price of its flagship Lumia 900 smart phone in half, barely three months after its launch.
In London, the FTSE 100 edged down by a modest 0.7%.
Shares in the world’s largest security firm G4S tumbled 8% after it warned it would incur a loss between GBP35 million and GBP50 million on its Olympic Games contract.
Barclays shares fell 3% as the Libor manipulation scandal remained in the spotlight.
Miners were lower, amid concerns over the global outlook. Rio Tinto shares retreated 1.3%, Anglo American shares declined 1%, while BHP Billiton shed 0.6%.
Shares in the U.S. followed lower with the Dow off 0,45%, the S&P500 down 0.16% and the tech heavy Nasdaq lower by 0.11%.
Markets are awaiting Ben Bernanke’s testimony, U.S. CPI and the European ZEW sentiment numbers on Tuesday.
Investors also anticipated Federal Reserve Chairman Ben Bernanke's semi-annual testimony to the U.S. Congress on Tuesday and Wednesday, amid ongoing speculation over whether the central bank will introduce more easing measures to stimulate the economy.
During European afternoon trade, the EURO STOXX 50 declined 0.32%, France’s CAC 40 gave back 0.03%, while Germany’s DAX 30 fought the downtrend climbing 0.13%%.
Market sentiment came under pressure amid uncertainty over whether some bondholders could be forced to accept losses under the terms of Spain's bank bailout.
The yield on Spanish 10-year bonds rose to 6.74%, re-approaching the critical 7% threshold, widely seen as unsustainable in the long run. The yield on Italian 10-year bonds ticked up to 6.07%.
Markets also remained nervous after Germany’s constitutional court announced earlier that it will deliver a ruling on whether the euro zone’s permanent bailout fund contravenes the German constitution on September 12, disappointing hopes for an earlier decision.
In addition, Retail sales in the U.S. fell for the third straight month in June, the first three month consecutive drop since 2008, official data showed on Monday.
Core retail sales declined for the first second consecutive month, adding to concerns the U.S. economic recovery is faltering.
In a report, the U.S. Census Bureau said that retail sales fell by a seasonally adjusted 0.5% in June, confounding expectations for a 0.2% increase.
Retail sales in May fell by an unrevised 0.2%.
Investors were also looking ahead to a testimony by Federal Reserve Chairman Ben Bernanke later in the week. Bernanke testifies to the Senate Banking Committee on Tuesday and to the House Financial Services panel on Wednesday.
Elsewhere, Chinese Premier Wen Jiabao warned over the weekend that China's economy has not yet entered a recovery and "difficulties may continue for some time."
He added that policy makers were likely to introduce measures to boost growth in the second half of the year, according to the state-run Xinhua News Agency.
The comments followed government data released Friday showing China’s second quarter economic growth slowed to 7.6% from a year earlier, compared to 8.1% in the first quarter.
Shares in Spanish lenders led losses in the financial sector, with Banco Santander shares down 1.6% and BBVA falling 1.55%.
Italian banks were also lower, with Unicredit dropping 1.25% and Intesa Sanpaolo declining 1.2%.
Shares in Nokia contributed to losses, slumping 2% after the firm cut the U.S. price of its flagship Lumia 900 smart phone in half, barely three months after its launch.
In London, the FTSE 100 edged down by a modest 0.7%.
Shares in the world’s largest security firm G4S tumbled 8% after it warned it would incur a loss between GBP35 million and GBP50 million on its Olympic Games contract.
Barclays shares fell 3% as the Libor manipulation scandal remained in the spotlight.
Miners were lower, amid concerns over the global outlook. Rio Tinto shares retreated 1.3%, Anglo American shares declined 1%, while BHP Billiton shed 0.6%.
Shares in the U.S. followed lower with the Dow off 0,45%, the S&P500 down 0.16% and the tech heavy Nasdaq lower by 0.11%.
Markets are awaiting Ben Bernanke’s testimony, U.S. CPI and the European ZEW sentiment numbers on Tuesday.