Markets

European Equity Benchmarks Close Lower Despite Modest Growth in France's Producer Price Index

European equities closed lower Friday despite positive data from France, where the monthly producer price index registered modest growth, and Germany, where public debt contracted.

Traders were also digesting the latest step taken by Japan's central bank, which sent the world's third largest economy's benchmark index, the Nikkei 225, tumbling to close 1.9% lower.

In a surprise move, the Bank of Japan announced it would extend the maturity on its purchases of government bonds to seven-to-12 years from an original seven-to-10 years but left its annual asset purchase target unchanged.

In European economic news, France's producer price index gained 0.1% in November, a slightly lower growth rate than the 0.2% reading registered one month earlier, according to data published by the French statistics agency INSEE.

The agency said that increases in prices for mining and quarrying products, energy and water were partially offset by a slight drop in prices for manufactured products.

In Germany, public debt decreased by 0.8%, or EUR16.5 billion ($17.89 billion), compared to the corresponding quarter of 2014, data published by the federal statistics agency destatis showed.

In equities, natural gas company BG Group fell 2.0% on the FTSE 100 index, telecommunication provider BT Group was down by 2.6%, Associated British Foods fell 2.3% and satellite communication provider Inmarsat slipped 2.0% lower

On the DAX, personal products maker Beiersdorf fell 2.5%, pharmaceutical and chemical company Bayer was down 2.3% and car maker Daimler was down 2.3%.

And, on the CAC-40, Accor, a hotel operator, was down by 3.1%, aircraft manufacturer Airbus Group edged 2.9% lower and Schneider Electric, an electricity distribution company, was 2.5% lower. Designer goods retailer LVMH Moet Hennessy Vuitton was down by 2.6%.

The FTSE closed 0.82% lower, the DAX fell 1.21% and the CAC-40 retreated by 1.12%.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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