Investing.com - European stocks extended losses on Wednesday, after the release of weak industrial production data out of the euro zone, while investors remained focused on the future of the Federal Reserve's asset purchase program.
During European afternoon trade, the EURO STOXX 50 retreated 0.59%, France’s CAC 40 slid 0.57%, while Germany’s DAX 30 shed 0.34%.
Official data showed that industrial production in the euro zone fell by a seasonally adjusted 0.5% in September, compared to expectations for a 0.3% decline. Industrial production in August rose 1%.
Meanwhile, equity markets were jittery after last week’s stronger than forecast U.S. nonfarm payrolls report prompted investors to bring forward expectations for a reduction in the Fed’s USD85 billion-a-month asset purchase program.
Investors were turning their attention to Thursday’s Senate hearing to confirm Janet Yellen as the first chairwoman of the Federal Reserve, for indications on the future course of U.S. monetary policy.
Financial stocks pushed broadly lower, as French lenders BNP Paribas and Societe Generale tumbled 1.11% and 1.25%, while Germany's Deutsche Bank plummeted 1.39%.
Among peripheral lenders, Spanish banks Banco Santander and BBVA lost 1.05% and 1.40% respectively, while Italy's Intesa Sanpaolo and Unicredit plumged 2% and 4.63%.
Elsewhere, Telefonica slipped 0.10%, erasing earlier gains, amid reports the company has approached potential acquisition targets and partners in Mexico, where it’s seeking to challenge billionaire Carlos Slim’s dominance.
In London, FTSE 100 declined 1.25%, as U.K. lenders tracked their European counterparts lower, while the Bank of England brought forward the date it expects the unemployment rate to hit the 7% threshold at which it will consider raising rates and revised up its forecast for growth.
Shares in HSBC Holdings lost 1.44% and the Royal Bank of Scotland tumbled 1.03%, while Lloyds Banking and Barclays plunged 1.82% and 3.12% respectively.
British Sky Broadcasting Group remained the worst performer on the index, down 3.57%, after announcing that it purchased 250,000 of its ordinary shares of 0.50 pence each for cancellation.
Elsewhere, Sainsbury saw shares soar 4.37% as the U.K.’s third-largest supermarket company said first-half earnings rose 7%.
In the U.S., equity markets pointed to a lower open. The Dow Jones Industrial Average futures pointed to a 0.14% fall, S&P 500 futures signaled a 0.13% loss, while the Nasdaq 100 futures indicated a 0.17% slip.
During European afternoon trade, the EURO STOXX 50 retreated 0.59%, France’s CAC 40 slid 0.57%, while Germany’s DAX 30 shed 0.34%.
Official data showed that industrial production in the euro zone fell by a seasonally adjusted 0.5% in September, compared to expectations for a 0.3% decline. Industrial production in August rose 1%.
Meanwhile, equity markets were jittery after last week’s stronger than forecast U.S. nonfarm payrolls report prompted investors to bring forward expectations for a reduction in the Fed’s USD85 billion-a-month asset purchase program.
Investors were turning their attention to Thursday’s Senate hearing to confirm Janet Yellen as the first chairwoman of the Federal Reserve, for indications on the future course of U.S. monetary policy.
Financial stocks pushed broadly lower, as French lenders BNP Paribas and Societe Generale tumbled 1.11% and 1.25%, while Germany's Deutsche Bank plummeted 1.39%.
Among peripheral lenders, Spanish banks Banco Santander and BBVA lost 1.05% and 1.40% respectively, while Italy's Intesa Sanpaolo and Unicredit plumged 2% and 4.63%.
Elsewhere, Telefonica slipped 0.10%, erasing earlier gains, amid reports the company has approached potential acquisition targets and partners in Mexico, where it’s seeking to challenge billionaire Carlos Slim’s dominance.
In London, FTSE 100 declined 1.25%, as U.K. lenders tracked their European counterparts lower, while the Bank of England brought forward the date it expects the unemployment rate to hit the 7% threshold at which it will consider raising rates and revised up its forecast for growth.
Shares in HSBC Holdings lost 1.44% and the Royal Bank of Scotland tumbled 1.03%, while Lloyds Banking and Barclays plunged 1.82% and 3.12% respectively.
British Sky Broadcasting Group remained the worst performer on the index, down 3.57%, after announcing that it purchased 250,000 of its ordinary shares of 0.50 pence each for cancellation.
Elsewhere, Sainsbury saw shares soar 4.37% as the U.K.’s third-largest supermarket company said first-half earnings rose 7%.
In the U.S., equity markets pointed to a lower open. The Dow Jones Industrial Average futures pointed to a 0.14% fall, S&P 500 futures signaled a 0.13% loss, while the Nasdaq 100 futures indicated a 0.17% slip.