Skip to Content
Market Update

European Stocks Slip; Data Eyed

European stocks slipped into negative turf early Friday as investors awaited a key reading on consumer confidence in the euro-zone due later today.

The FTSE 100 lost 0.2% at 8:35 a.m. London time. The CAC 40 Paris erased 0.7% while the DAX Frankfurt pulled back 0.2%.

Losses in European markets came despite gains in their U.S. and Asian counterparts, as investors turned cautious before the release of euro-zone consumer confidence data, and even ignored some upbeat economic news from Germany.

Official data released Friday showed Germany's economy rebounded sharply in the second quarter from a weak start to the year, on the back of a pickup in investment and robust consumption.

Markets were also eyeing the second estimate of second-quarter economic growth in the U.K. and a report on new home sales in the U.S. due later in the day.

Meanwhile, ongoing uncertainty concerning the future of the Fed's stimulus plans also undermined sentiment. Data released yesterday in the U.S. showed number of jobless claims rose more than expected last week, further adding to the uncertainty over Fed's taper plans.

Stocks on the Move

Financials were mostly listless across the region. French lenders BNP Paribas SA, Societe Generale SA and Credit Agricole SA were down around 0.5% each while London-based Lloyds Banking Group Plc. was little changed. Barclays Plc. moved off 0.6% while HSBC Holdings was trading near the flat line.

German bankers, however, bucked the trend. Deutsche Bank AG climbed 0.6% even as Commerzbank AG gained 1.5%.

Most miners, too, were trading with decent gains. RIo Tinto Plc. added around a percent while Glencore Xstrata Plc. enhanced 0.7%.

In the oil and gas segment, Royal Dutch Shell slipped 0.3% while BP Plc. lost around 0.2%.

In corporate news, French aircraft engine manufacturer Safran SA said it would sell its U.S. based Globe Motors Inc. to Allied Motion Inc. for $90 million. Shares of Safran SA were down 0.7%.