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Market Update

European Markets Decline as Data Disappoints

European stocks were all lower Tuesday tracking losses elsewhere in global markets and also weighed by some downbeat data out of the region.

The FTSE was down 0.5%. The CAC 40 Paris gave up 0.4% while the DAX was also 0.5% lower.

Banking stocks were in focus after media reports of more fines from the U.S. following a settlement with BNP Paribas about a week ago.

Earlier, data showed the German trade balance widened in May to a record high of EUR18.8 billion, surpassing expectations for a EUR16.4 billion surplus. However, exports fell 1.1% during the month, while imports fell even faster. Yesterday, data showed industrial output fell by 1.8% in May, its biggest drop in two years.

Echoing a similar fall in Germany, earlier today, the U.K. released data showing industrial production unexpectedly fell 0.7% on the month while manufacturing production dropped 1.3%.

The French central bank said the economy grew only 0.2% in the second quarter while customs office data showed the trade deficit widened in May from the previous month to EUR4.9 billion.

Stocks on the Move

Shares in Marks and Spencer Group PLC were down 1.1% after the retailer reported a fall for a twelfth straight quarter in underlying non-food sales.

Commerzbank AG fell 3.8% after media reports U.S. authorities had begun settlement talks with the German lender as well as with larger competitor Deutsche Bank AG. Deutsche Bank shares fell 1.8%. The New York Times reported the settlement with Commerzbank was expected to include at least $500 million in penalties.

Sanofi traded flat after it said the U.S. FDA has accepted for review the filing of a new drug application.

Air France-KLM dropped 4.8% after the airline said 2014 profits could be as much as 12% lower than previously forecast because of overcapacity and resulting weak prices in both the passenger and cargo sectors.