Investing.com - European stocks declined on Wednesday, as investors awaited the outcome of the European Central Bank’s policy-setting meeting on Thursday amid growing expectations for further easing measures to stimulate growth.
During European morning trade, the EURO STOXX 50 declined 0.43%, France’s CAC 40 dropped 0.59%, while Germany’s DAX 30 fell 0.33%.
The ECB was widely expected to announce an interest rate cut to 0.75% from the current record low 1.00% to help bolster growth in the region, following a recent string of weak economic data.
Data on Monday showed that the unemployment rate in the bloc rose to a record in May, while the manufacturing sector remained firmly in contraction territory in June.
Investors were also awaiting Friday’s U.S. nonfarm payrolls report, amid speculation that the Federal Reserve could implement a third round of quantitative easing to shore up the economy, which has been hit by the ongoing crisis in the euro zone.
Financial stocks were broadly lower, led by French lender BNP Paribas, down 1.12%, and closely followed by Germany’s Deutsche Bank, with shares tumbling 1.02%, while Commerzbank dropped 0.88%.
Peripheral lenders also contributed to losses, as shares in Italian Unicredit and Intesa Sanpaolo declined 1.19% and 0.62% respectively, while Spain’s BBVA retreated 0.69%.
Meanwhile, French retail group Carrefour saw shares plummet 4.08% after new CEO George Plassat said he needs three years to revive the group. He added that he will focus on reducing debt and costs, restoring power to managers, and look at the future of each country market.
On the upside, Germany-based Allianz advanced 0.58% after saying it has attracted a number of potential buyers in the sale of its European vending machine business Selecta, which is expected to fetch at least EUR700 million according to a Reuters report.
In London, FTSE 100 declined 0.24%, as U.K. lenders tracked their European counterparts lower.
Shares in the Royal Bank of Scotland tumbled 1.06% and HSBC Holdings slumped 0.96%, while Lloyds Banking and Barclays retreated 0.63% and 0.36% respectively.
Earlier in the day, the Royal Bank of Scotland admitted that mortgage and loan repayments had mistakenly been debited twice from customers’ accounts in the latest chapter of a series of IT glitches that are now heading into their third week.
Energy stocks were also on the downside as oil and gas major BP saw shares plunge 1.60% and Anglo American fell 0.21%.
Mining giants Rio Tinto and BHP Billiton added 0.13% and 0.16% on the other hand, while copper producer Xstrata advanced 0.53%.
Elsewhere, shares in Vodafone climbed 0.89% amid reports the phone company is in talks with Hutchison Whampoa to combine their networks in Ireland.
In the U.S., equity markets were closed for the Independence Day holiday.
Later in the day, the euro zone was to publish official data on retail sales, as well as revised data on service sector activity.
During European morning trade, the EURO STOXX 50 declined 0.43%, France’s CAC 40 dropped 0.59%, while Germany’s DAX 30 fell 0.33%.
The ECB was widely expected to announce an interest rate cut to 0.75% from the current record low 1.00% to help bolster growth in the region, following a recent string of weak economic data.
Data on Monday showed that the unemployment rate in the bloc rose to a record in May, while the manufacturing sector remained firmly in contraction territory in June.
Investors were also awaiting Friday’s U.S. nonfarm payrolls report, amid speculation that the Federal Reserve could implement a third round of quantitative easing to shore up the economy, which has been hit by the ongoing crisis in the euro zone.
Financial stocks were broadly lower, led by French lender BNP Paribas, down 1.12%, and closely followed by Germany’s Deutsche Bank, with shares tumbling 1.02%, while Commerzbank dropped 0.88%.
Peripheral lenders also contributed to losses, as shares in Italian Unicredit and Intesa Sanpaolo declined 1.19% and 0.62% respectively, while Spain’s BBVA retreated 0.69%.
Meanwhile, French retail group Carrefour saw shares plummet 4.08% after new CEO George Plassat said he needs three years to revive the group. He added that he will focus on reducing debt and costs, restoring power to managers, and look at the future of each country market.
On the upside, Germany-based Allianz advanced 0.58% after saying it has attracted a number of potential buyers in the sale of its European vending machine business Selecta, which is expected to fetch at least EUR700 million according to a Reuters report.
In London, FTSE 100 declined 0.24%, as U.K. lenders tracked their European counterparts lower.
Shares in the Royal Bank of Scotland tumbled 1.06% and HSBC Holdings slumped 0.96%, while Lloyds Banking and Barclays retreated 0.63% and 0.36% respectively.
Earlier in the day, the Royal Bank of Scotland admitted that mortgage and loan repayments had mistakenly been debited twice from customers’ accounts in the latest chapter of a series of IT glitches that are now heading into their third week.
Energy stocks were also on the downside as oil and gas major BP saw shares plunge 1.60% and Anglo American fell 0.21%.
Mining giants Rio Tinto and BHP Billiton added 0.13% and 0.16% on the other hand, while copper producer Xstrata advanced 0.53%.
Elsewhere, shares in Vodafone climbed 0.89% amid reports the phone company is in talks with Hutchison Whampoa to combine their networks in Ireland.
In the U.S., equity markets were closed for the Independence Day holiday.
Later in the day, the euro zone was to publish official data on retail sales, as well as revised data on service sector activity.