Shutterstock photo
Markets

European stocks push lower in cautious trade; Dax down 0.46%

Shutterstock photo

Shutterstock photo

Investing.com -

Investing.com - European stocks pushed lower on Tuesday, after the release of mixed economic reports from the euro zone and as investors remained cautious ahead of the European Central Bank's monthly policy meeting scheduled later in the week.

During European afternoon trade, the DJ Euro Stoxx 50 shed 0.43, France's CAC 40 slid 0.32%, while Germany's DAX retreated 0.46%.

Eurostat said consumer price inflation in the euro zone increased by 0.5% last month, down from 0.7% in April and missing expectations for a reading of 0.7%. The rate stands well below the ECB's target of near but just under 2%.

A separate report showed that the unemployment rate in the single currency bloc ticked down to 11.7% in April, from 11.8% the previous month, confounding expectations for the rate to remain unchanged.

Earlier Tuesday, official data showed that the number of unemployed people in Spain dropped by 111,900 last month, compared to expectations for a 112,300 decline, after a 111,600 fall in April.

But European equities remained mildly supported after data last week showing that the annual rate of inflation in Italy and Spain slowed in May added to expectations that the ECB will take steps to tackle low consumer price growth.

Financial stocks turned mostly lower, as Societe Generale (PARIS:SOGN) slid 0.37% and BNP Paribas (PARIS:BNPP) edged up 0.10% in France, while Germany's Deutsche Bank (XETRA:DBKGn) tumbled 1.08%.

Among peripheral lenders, Spanish banks BBVA (MADRID:BBVA) and Banco Santander (MADRID:SAN) fell 0.11% and 0.31% respectively, while Italy's Unicredit (MILAN:CRDI) and Intesa Sanpaolo (MILAN:ISP) retreated 0.89% and 1.09%.

Elsewhere, GDF Suez (PARIS:GSZ) rallied 1.71%, still supported by news on Friday that the French power company's energy services unit Cofely bought U.S. firm Ecova for $335 million in a move to expand its energy efficiency business.

In London, FTSE 100 declined 0.64%, as U.K. lenders tracked their European counterparts lower.

The Royal Bank of Scotland (LONDON:RBS) slipped 0.15% and Lloyds Banking (LONDON:LLOY) shed 0.32%, while HSBC Holdings (LONDON:HSBA) dropped 0.54% and Barclays (LONDON:BARC) tumbled 1.07%.

Intercontinental Hotels (LONDON:IHG) also remained on the downside, sliding 0.38% as Chief Executive Officer Richard Solomons said his company can grow on its own without a merger or takeover.

In the mining sector, stocks were still mixed. Rio Tinto (LONDON:RIO) dipped 0.06% and Bhp Billiton (LONDON:BLT) declined 0.95%, while rivals Glencore Xstrata (LONDON:GLEN) and Vedanta Resources (LONDON:VED) gained 0.02% and 0.54% respectively.

Meanwhile, Wolseley (LONDON:WOS) continued to lead gains on the index, with shares surging 2.51%, after the U.K. distributor of plumbing and heating products reported third-quarter sales growth of 5.1%.

Also in the U.K., Markit research group said the U.K. construction purchasing managers' index ticked down to 60.0 in May, from a reading of 60.8 the previous month. Analysts had expected the index to remain unchanged last month.

In the U.S., equity markets pointed to a moderately lower open. The Dow 30futures pointed to a 0.09% loss, S&P 500futures signaled a 0.14% fall, while the Nasdaq 100futures indicated a 0.19% decline.

Later in the day, the U.S. was to produce data on factory orders.

Investing.com offers an extensive set of professional tools for the financial markets.

Read more News on Investing.com and download the new Investing.com Stocks & Forex App for Android!

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.

Other Topics

ForEx