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European stocks steady to lower as sentiment wanes; Dax down 0.12%

Published 08/17/2017, 03:31 AM
Updated 08/17/2017, 03:31 AM
© Reuters.  Frankfurt Stock Exchange

© Reuters. Frankfurt Stock Exchange

Investing.com - European stocks opened steady to lower on Thursday, as fresh tensions in Washington dampened market sentiment and as investors looked ahead to euro zone inflation data due to be released later in the day.

During European morning trade, the EURO STOXX 50 dipped 0.01%, France’s CAC 40 inched 0.01% higher, while Germany’s DAX 30 edged down 0.12%.

Investors remained cautious after U.S. President Donald Trump disbanded two high-profile business advisory councils, sparking concerns over the administration’s ability to implement his economic reforms.

The move came after several chief executives quit in protest over his remarks blaming weekend violence in Virginia not only on white nationalists but also on anti-racism activists who opposed them.

Market participants were looking ahead to a final report on euro zone consumer price inflation, due later Thursday, as well as the minutes of the European Central Bank’s latest policy meeting for potential indications on when the central bank will begin tapering its asset purchase program.

Reports on Wednesday revealed that ECB President Mario Draghi will not deliver any fresh monetary policy message at the U.S. Federal Reserve's Jackson Hole conference.

Financial stocks were broadly lower, as French lenders BNP Paribas (PA:BNPP) and Societe Generale (PA:SOGN) declined 0.71% and 0.81%, while Germany’s Commerzbank (DE:CBKG) and Deutsche Bank (DE:DBKGn) retreated 0.99% and 0.96%.

Among peripheral lenders, Italy’s Intesa Sanpaolo (MI:ISP) and Unicredit (MI:CRDI) lost 0.22% and 0.61% respectively, while Spanish banks BBVA (MC:BBVA) and Banco Santander (MC:SAN) dropped 0.74% and 0.69%.

Elsewhere, Vestas Wind Systems A/S (CO:VWS) shares dove 4.90% after the wind turbine manufacturer said second quarter revenue dropped 14% compared to the same period a year earlier, to hit €2,206 million.

The Danish company also announced plans to initiate a share buy-back program of up to approximately €600 million, to be executed from August 17 to December 29 of this year.

In London, FTSE 100 slipped 0.17%, weighed by Hikma Pharmaceuticals PLC (LON:HIK), whose shares sank 8.50% after lowering its guidance for 2017 generics sales.

The drugmaker also warned its group revenues will come in at the low end of the forecast it issued in May, citing an “increasingly challenging environment”.

Kingfisher (LON:KGF) Plc added to losses, with shares down 2.83% after the home improvement company reported a decline in second-quarter sales, due to ongoing weakness in its French market and “disruption” to its restructuring plans.

Financial stocks were also on the downside, as Lloyds Banking (LON:LLOY) slid 0.40% and Barclays (LON:BARC) dropped 0.52%, while the Royal Bank of Scotland (LON:RBS) and HSBC Holdings (LON:HSBA) retreated 0.74% and 0.76% respectively.

Meanwhile, mining stocks were broadly higher on the commodity-heavy index. Shares in Anglo American (LON:AAL) jumped 1.21% and BHP Billiton (LON:BLT) rallied 1.24%, while Randgold Resources (LON:RRS) climbed 2.40% and Fresnillo (LON:FRES) surged 2.92%.

In the U.S., equity markets pointed to a steady open. The Dow Jones Industrial Average futures pointed to a 0.02% gain, S&P 500 futures signaled a 0.02% uptick, while the Nasdaq 100 futures indicated a 0.04% dip.

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