Investing.com - European stock markets extended losses on Thursday, as disappointing U.S. employment data sparked concerns over the extent of the country’s economic recovery, while investors remained cautious ahead of a key meeting of euro zone ministers on Friday.
During European morning trade, the EURO STOXX 50 plummeted 1.21%, France’s CAC 40 dropped 0.86%, while Germany’s DAX 30 tumbled 1.15%.
Data showed earlier that the number of people who filed for unemployment assistance in the U.S. last week fell less-than-expected, although remaining close to the lowest level since April 2008.
Sentiment was also hit after ratings agency Standard & Poor’s said Greece may have to restructure its debt again.
Meanwhile, markets were jittery as euro zone finance ministers were expected to decide at a meeting in Copenhagen on Friday to run the EUR500 billion permanent European Stability Mechanism alongside the EUR200 billion committed by the temporary fund, the European Financial Stability Facility.
Financial stocks turned broadly lower as shares in French lenders BNP Paribas and Societe Generale retreated 1.27% and 1.18%, while Germany’s Deutsche Bank and Commerzbank dropped 1.31% and 0.58%.
Peripheral lenders were also sharply lower. Italy’s Unicredit saw shares plunge 3.31% and Intesa Sanpaolo declined 2.46%, while Spanish lenders BBVA and Banco Santander lost 0.78% and 1.30% respectively.
Elsewhere, France’s oil giant Total tumbled 1.50% as the company was still seeking for ways to extinguish a flare left burning 100 meters from where explosive natural gas was leaking at the Elgin North Sea platform for a fifth day.
On the upside, Nobel Biocare surged 5.15% after the company said it would reject a takeover offer for CHF14 to CHF15, while a bid at CHF17 to CHF20 would probably have to be decided by the shareholders.
In London, FTSE 100 declined 0.79%, as financial stocks extended earlier losses and after data showed that house prices in the U.K. fell unexpectedly in March.
Shares in Barclays plunged 2.73% and the Royal Bank of Scotland plummeted 2.10%, while Lloyds Banking and HSBC Holdings slumped 1.35% and 0.99%.
FirstGroup, the U.K.’s biggest train operator, plunged 13.73% as it warned that margins in its U.K. bus division would fall more than a third this year, due to the weak economy and government cuts to subsidies for the industry.
Meanwhile, mining stocks held onto gains, with shares in Rio Tinto climbing 2.25% and Bhp Billiton up 0.01%.
In the energy sector, International Power was one of the session’s top gainers as shares soared 6.42% after it confirmed it had received a bid from GDF Suez.
In the U.S., equity markets pointed to a lower open. The Dow Jones Industrial Average futures pointed to a fall of 0.28%, S&P 500 futures signaled a 0.34% decline, while the Nasdaq 100 futures indicated a 0.29% loss.
Also Thursday, official data showed that the number of unemployed people in Germany fell more-than-expected in March by 18,000, while the country’s jobless rate dropped to a record low of 6.7%.
Later in the day, Federal Reserve Chairman Ben Bernanke was due to speak.
During European morning trade, the EURO STOXX 50 plummeted 1.21%, France’s CAC 40 dropped 0.86%, while Germany’s DAX 30 tumbled 1.15%.
Data showed earlier that the number of people who filed for unemployment assistance in the U.S. last week fell less-than-expected, although remaining close to the lowest level since April 2008.
Sentiment was also hit after ratings agency Standard & Poor’s said Greece may have to restructure its debt again.
Meanwhile, markets were jittery as euro zone finance ministers were expected to decide at a meeting in Copenhagen on Friday to run the EUR500 billion permanent European Stability Mechanism alongside the EUR200 billion committed by the temporary fund, the European Financial Stability Facility.
Financial stocks turned broadly lower as shares in French lenders BNP Paribas and Societe Generale retreated 1.27% and 1.18%, while Germany’s Deutsche Bank and Commerzbank dropped 1.31% and 0.58%.
Peripheral lenders were also sharply lower. Italy’s Unicredit saw shares plunge 3.31% and Intesa Sanpaolo declined 2.46%, while Spanish lenders BBVA and Banco Santander lost 0.78% and 1.30% respectively.
Elsewhere, France’s oil giant Total tumbled 1.50% as the company was still seeking for ways to extinguish a flare left burning 100 meters from where explosive natural gas was leaking at the Elgin North Sea platform for a fifth day.
On the upside, Nobel Biocare surged 5.15% after the company said it would reject a takeover offer for CHF14 to CHF15, while a bid at CHF17 to CHF20 would probably have to be decided by the shareholders.
In London, FTSE 100 declined 0.79%, as financial stocks extended earlier losses and after data showed that house prices in the U.K. fell unexpectedly in March.
Shares in Barclays plunged 2.73% and the Royal Bank of Scotland plummeted 2.10%, while Lloyds Banking and HSBC Holdings slumped 1.35% and 0.99%.
FirstGroup, the U.K.’s biggest train operator, plunged 13.73% as it warned that margins in its U.K. bus division would fall more than a third this year, due to the weak economy and government cuts to subsidies for the industry.
Meanwhile, mining stocks held onto gains, with shares in Rio Tinto climbing 2.25% and Bhp Billiton up 0.01%.
In the energy sector, International Power was one of the session’s top gainers as shares soared 6.42% after it confirmed it had received a bid from GDF Suez.
In the U.S., equity markets pointed to a lower open. The Dow Jones Industrial Average futures pointed to a fall of 0.28%, S&P 500 futures signaled a 0.34% decline, while the Nasdaq 100 futures indicated a 0.29% loss.
Also Thursday, official data showed that the number of unemployed people in Germany fell more-than-expected in March by 18,000, while the country’s jobless rate dropped to a record low of 6.7%.
Later in the day, Federal Reserve Chairman Ben Bernanke was due to speak.