Markets

European stocks open lower as sentiment wanes; DAX down 0.46%

Investing.com -

Investing.com - European stocks opened lower on Tuesday, as disappointing manufacturing activity data from China and the U.S. continued to weigh on sentiment and as investors focused on a fresh series of earnings reports.

During European morning trade, the EURO STOXX 50 retreated 0.81%, France's CAC 40 slid 0.66%, while Germany's DAX 30 declined 0.46%.

Data on Monday showed that China's official manufacturing purchasing managers' index ticked down to 49.9 in July from 50.0 the previous month, compared to expectations for an unchanged reading.

In the U.S., the Institute for Supply Management said its index of manufacturing activity dropped to 52.6 last month from June's 53.2. Analysts had expected the index to tick down to 53.0 in July.

Financial stocks were broadly lower, as French lenders Societe Generale (PA:SOGN) and BNP Paribas (PA:BNPP) plummeted 2.23% and 3%, while Germany's Deutsche Bank (DE:DBKGn) and Commerzbank (DE:CBKG) dove 2.83% and 6.32%.

Earlier in the day, Commerzbank cut its full-year net profit target for 2016.

Among peripheral lenders, Italy's Intesa Sanpaolo (MI:ISP) and Unicredit (MI:CRDI) lost 1.71% and 4.98% respectively, while Spanish banks BBVA (MC:BBVA) and Banco Santander (MC:SAN) tumbled 1.45% and 1.30%.

Elsewhere, Deutsche Lufthansa AG (BE:LHABy) rose 0.38% after the German airline company reported a nearly 12% year-on-year increase in earnings for the first half of the year.

However, the group warned that the second-half of the year will be more difficult and said it will continue with cost-cutting measures.

In London, FTSE 100 declined 0.42%, as U.K. lenders tracked their European counterparts lower.

Shares in HSBC Holdings (LON:HSBA) dropped 0.63% and Barclays (LON:BARC) lost 1.49%, while Lloyds Banking (LON:LLOY) and the Royal Bank of Scotland (LON:RBS) plummeted 1.88% and 2.12% respectively.

Meggitt (LON:MGGT) was also one of the worst performers on the index, with shares diving 3.39% after the engineering company reported a 60% decline in first-half pretax profit, due to the recent weakness of the pound.

Meanwhile, mining stocks were mixed on the commodity-heavy index. Rio Tinto (LON:RIO) dropped 0.58% and Glencore (LON:GLEN) lost 1%, while rivals Randgold Resources (LON:RRS) and Fresnillo (LON:FRES) rallied 0.95% and 1.56% respectively.

In the U.S., equity markets pointed to a steady to higher open. The Dow Jones Industrial Average futures pointed to a 0.06% gain, S&P 500 futures a 0.08% uptick, while the Nasdaq 100 futures indicated a 0.13% rise.

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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.


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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