Investing.com - European stocks were mostly lower on Thursday,
as downbeat economic growth readings from Germany and France
weighed on market sentiment.
During European morning trade, the DJ Euro Stoxx 50 declined
0.44%, France's CAC 40 fell 0.25%, while Germany's DAX slipped
Data showed that Germany's gross domestic product shrank by 0.2%
in the three month to June, the first drop since 2012. Economists
had forecasts a contraction of 0.1%. First quarter growth was also
revised down to 0.7% from 0.8% previously.
Earlier Thursday official data showed that French GDP was flat
in the second quarter, the second consecutive quarter of
stagnation. Economists had expected an expansion of 0.1%.
The weaker than expected data added to concerns that the
economic recovery in the euro area is losing momentum, adding to
pressure on the European Central Bank to do more to bolster growth
after it cut rates to record lows in June.
Financial stocks were broadly lower, as French lenders BNP
Paribas (PARIS:BNPP) and Societe Generale (PARIS:SOGN) declined
0.74% and 0.44%, while Germany's Commerzbank (XETRA:CBKG) fell
Among peripheral lenders, Italy's Intesa Sanpaolo (MILAN:ISP)
and Unicredit (MILAN:CRDI) tumbled 0.98% and 1.01% respectively,
while Spanish banks Banco Santander (MADRID:SAN) and BBVA
(MADRID:BBVA) dropped 0.55% and 0.99%.
Elsewhere, RWE (XETRA:RWEG) plunged 3.44% after Germany's
biggest producer of electricity turned to a loss in the second
quarter. The company said that sales fell 16% to €10.4 billion.
In London, FTSE 100 added 0.17%, supported by British Land
(LONDON:BLND), up 1.66%, after the stock was upgraded by Liberum
Capital from "hold" to "buy".
Financial stocks were also mostly higher, as Lloyds Banking
(LONDON:LLOY) rose 0.31% and the Royal Bank of Scotland
(LONDON:RBS) gained 0.41%, while Barclays (LONDON:BARC) and HSBC
Holdings (LONDON:HSBA) advanced 0.60% and 0.70% respectively.
Meanwhile, mining stocks were trending broadly lower. Shares in
Fresnillo (LONDON:FRES) declined 0.68% and Bhp Billiton
(LONDON:BLT) dropped 0.89%, while rivals Glencore Xstrata
(LONDON:GLEN) and Rio Tinto (LONDON:RIO) plummeted 1.50% and
In the U.S., equity markets pointed to a steady open. The Dow
30futures pointed to a 0.01% dip, S&P 500futures signaled a
0.01% gain, while the Nasdaq 100futures indicated an uptick of
Later in the day, the euro zone was to publish preliminary GDP
data, while the U.S. was to release the weekly report on initial
offers an extensive set of professional tools for the financial
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