Investing.com - European stocks declined in choppy trade on Thursday, as market sentiment remained under pressure amid growing skepticism over the outcome of a European Union summit due to begin later in the day.
During European morning trade, the EURO STOXX 50 declined 0.77%, France’s CAC 40 retreated 0.71%, while Germany’s DAX 30 dropped 0.75%.
Hopes that European leaders would make headway on dealing with the debt crisis in the region faded after German Chancellor Angel Merkel reiterated her opposition to the idea of joint euro zone bonds on Wednesday.
EU Economic and Monetary Affairs Commissioner Olli Rehn said Wednesday that the summit would focus on short-term measures to stabilize markets and ease pressure on at-risk countries.
On Wednesday, Italy saw six-month borrowing costs climb to the highest level since December as investor sentiment towards the country continued to deteriorate.
Meanwhile, the yield on Spanish 10-year bonds was at 6.93% on Thursday, hovering just below the 7% threshold that prompted Greece, Ireland and Portugal to seek international bailouts.
Financial stocks were broadly lower, led by French lender BNP Paribas, down 1.83%, and closely followed by Italy’s Unicredit, with shares tumbling 1.67%.
Germany’s two biggest lenders, Deutsche bank and Commerzbank, were also sharply lower, as shares plummeted 1.74% and 4.06% respectively, while Spanish lenders BBVA and Banco Santander saw shares retreat 1.47% and 1.42%.
On the upside, German auto maker Daimler led gains, with shares climbing 0.86%, while Volkswagen added 0.07%. French auto companies added to gains, as shares in Peugeot advanced 0.41% and Renault climbed 0.90%.
Meanwhile, Paris-based Veolia Environnement rose 0.74% after agreeing to sell the water business to Rift Acquisitions Ltd., an acquisition entity formed by Infracapital Partners and Morgan Stanley Infrastructure Partners. Veolia called the sale the first “significant step” in an asset-divestment program that it announced in December.
In London, FTSE 100 fell 0.51%, as U.K. lenders tracked their European counterparts lower and after industry data showed that house prices in the U.K. fell unexpectedly in June.
Shares in HSBC Holdings plummeted 1.57% and Barclays tumbled 1.77%, while Lloyds Banking and the Royal Bank of Scotland declined 0.91% and 1.03% respectively.
On Wednesday, U.S. and U.K. authorities announced that they had fined Barclays more than USD450 million for attempting to manipulate the London interbank offered rate, a benchmark interest rate.
Mining stocks were also on the downside, as shares in Rio Tinto and Bhp Billiton fell 0.37% and 0.36%, while copper producers Xstrata and Kazakhmys declined 0.75% and 0.22% respectively.
Elsewhere, the U.K.’s second-largest department-store chain, Debenhams Plc saw shares tumble 1.50% after it reduced its gross margin for the year by 0.3% from last year’s level.
In the U.S., equity markets pointed to a lower open. The Dow Jones Industrial Average futures pointed to a 0.21% fall, S&P 500 futures signaled a 0.21% decline, while the Nasdaq 100 futures indicated a 0.10% loss.
Later in the day, Germany was to produce official data on unemployment change, while the U.S. was to release government data on initial jobless claims, followed by revised data on first quarter economic growth.
During European morning trade, the EURO STOXX 50 declined 0.77%, France’s CAC 40 retreated 0.71%, while Germany’s DAX 30 dropped 0.75%.
Hopes that European leaders would make headway on dealing with the debt crisis in the region faded after German Chancellor Angel Merkel reiterated her opposition to the idea of joint euro zone bonds on Wednesday.
EU Economic and Monetary Affairs Commissioner Olli Rehn said Wednesday that the summit would focus on short-term measures to stabilize markets and ease pressure on at-risk countries.
On Wednesday, Italy saw six-month borrowing costs climb to the highest level since December as investor sentiment towards the country continued to deteriorate.
Meanwhile, the yield on Spanish 10-year bonds was at 6.93% on Thursday, hovering just below the 7% threshold that prompted Greece, Ireland and Portugal to seek international bailouts.
Financial stocks were broadly lower, led by French lender BNP Paribas, down 1.83%, and closely followed by Italy’s Unicredit, with shares tumbling 1.67%.
Germany’s two biggest lenders, Deutsche bank and Commerzbank, were also sharply lower, as shares plummeted 1.74% and 4.06% respectively, while Spanish lenders BBVA and Banco Santander saw shares retreat 1.47% and 1.42%.
On the upside, German auto maker Daimler led gains, with shares climbing 0.86%, while Volkswagen added 0.07%. French auto companies added to gains, as shares in Peugeot advanced 0.41% and Renault climbed 0.90%.
Meanwhile, Paris-based Veolia Environnement rose 0.74% after agreeing to sell the water business to Rift Acquisitions Ltd., an acquisition entity formed by Infracapital Partners and Morgan Stanley Infrastructure Partners. Veolia called the sale the first “significant step” in an asset-divestment program that it announced in December.
In London, FTSE 100 fell 0.51%, as U.K. lenders tracked their European counterparts lower and after industry data showed that house prices in the U.K. fell unexpectedly in June.
Shares in HSBC Holdings plummeted 1.57% and Barclays tumbled 1.77%, while Lloyds Banking and the Royal Bank of Scotland declined 0.91% and 1.03% respectively.
On Wednesday, U.S. and U.K. authorities announced that they had fined Barclays more than USD450 million for attempting to manipulate the London interbank offered rate, a benchmark interest rate.
Mining stocks were also on the downside, as shares in Rio Tinto and Bhp Billiton fell 0.37% and 0.36%, while copper producers Xstrata and Kazakhmys declined 0.75% and 0.22% respectively.
Elsewhere, the U.K.’s second-largest department-store chain, Debenhams Plc saw shares tumble 1.50% after it reduced its gross margin for the year by 0.3% from last year’s level.
In the U.S., equity markets pointed to a lower open. The Dow Jones Industrial Average futures pointed to a 0.21% fall, S&P 500 futures signaled a 0.21% decline, while the Nasdaq 100 futures indicated a 0.10% loss.
Later in the day, Germany was to produce official data on unemployment change, while the U.S. was to release government data on initial jobless claims, followed by revised data on first quarter economic growth.