(MENAFN– ecpulse)
European shares resume its decline on Tuesday, extending losses into midday European trades after weaker-than-expected German industrial data prompted investors to take profit on last week’s rally.
Data released earlier in the morning showed industrial production in Germany declined in May at the sharpest pace since April 2012, weighed by a fall in both manufacturing and construction output.
Data weighed on economists outlook for second quarter Gross Domestic Product (GDP), which is now expected to increase by a mere 0.1 percent from a previous rise of 0.4 percent.
During the weekend, International Monetary Fund Managing Director Christine Lagarde said the strength of the global economic recovery could be less robust than expected, hinting at a slight cut in the Fund`s growth forecasts.
As of 06:56 EST:
- STOXX Europe 600 fell 0.40 percent to 346.54 points
- Euro Stoxx 50 lost 0.33 percent to 3,259.41 points
European markets rallied last week, buoyed by European Central Bank Chief’s dovish statement. Mario Draghi said rates will stay at current levels for "an extended period," analysts now expect the period to last at least through 2016, given the ECB`s inflation forecasts.
All eyes will turn to the Bank of England (BoE) monetary policy meeting later this week as investors brace for fresh indications on and when interest rate are likely to go up.
Regarding other major European indices:
- Germany`s DAX edged 0.21% lower to 9,989.68 points
- British FTSE 100 was down 0.20% to 6,852.36 points
- France’s CAC 40 index declined 0.43% to 4,449.83 points
On earning front, one of the biggest losers was German broadcaster Sky Deutschland, after Japanese bank Nomura cut its recommendation on the group to neutral from buy.
Meanwhile, shares in Lufthansa bucked the trend after signing a partnership deal with Air China. The stock was the top gainer on the German DAX, edging higher by 1 percent.
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.