Investing.com - European stocks opened lower on Friday, as
comments by European Central Bank President Mario Draghi continued
to weigh and concerns over geopolitical tensions in Iraq and
Ukraine still dampened risk sentiment.
During European morning trade, the DJ Euro Stoxx 50 retreated
0.73%, France's CAC 40 lost 0.67%, while Germany's DAX tumbled
European Central Bank President Mario Draghi said the bank still
expects a "moderate" and "uneven" economic recovery in the euro
area and acknowledged that there has been a slowing down in growth
Mr. Draghi also said that interest rates will remain at present
levels "for an extended period of time" and reiterated that the
bank was still committed to using unconventional measures if the
Elsewhere, U.S. President Barack Obama on Thursday authorized
air strikes in Iraq to put an end to an onslaught by Islamic
In addition, Moscow banned imports of most food from the West in
retaliation against sanctions against it over Ukraine.
Financial stocks were broadly lower, as French lenders BNP
Paribas (PARIS:BNPP) and Societe Generale (PARIS:SOGN) tumbled
1.03% and 1.47%, while Germany's Deutsche Bank (XETRA:DBKGn)
Among peripheral lenders, Italy's Intesa Sanpaolo (MILAN:ISP)
and Unicredit (MILAN:CRDI) lost 1.71% and 1.52% respectively, while
Spanish banks Banco Santander (MADRID:SAN) and BBVA (MADRID:BBVA)
declined 0.69% and 1.46%.
On the upside, shares in Allianz (XETRA:ALVG) climbed 0.62%
after the German insurer said second-quarter profit increased by
11%, thanks to lower natural-disaster claims and higher earnings at
the life and health insurance unit.
In London, FTSE 100 dropped 0.68%, as U.K. lenders tracked their
European counterparts lower.
Shares in the Royal Bank of Scotland (LONDON:RBS) slumped 0.56%
and Barclays (LONDON:BARC) lost 0.64%, while Lloyds Banking
(LONDON:LLOY) retreated 0.81%. HSBC Holdings (LONDON:HSBA)
overperformed however, rising 0.35%.
In the mining sector, stocks were also mostly lower. Rio Tinto
(LONDON:RIO) saw shares edge down 0.15% and Bhp Billiton
(LONDON:BLT) dropped 0.68%, while Glencore Xstrata (LONDON:GLEN)
In the U.S., equity markets pointed to a lower open. The Dow
30futures pointed to a 0.50% decline, S&P 500futures signaled a
0.58% drop, while the Nasdaq 100futures indicated a 0.59% loss.
Also Friday, official data showed that French industrial
production rose 1.3% in June, exceeding expectations for a 1.0%
gain, after a decline of 1.6% in May, whose figure was revised from
a previously estimated 2.3% drop.
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