(MENAFN– ecpulse)
European stocks opened slightly lower Thursday, following a slew of spooky growth data pointing to further weakness in the euro-area economies.
The sentiment for equities deteriorated in the early part of the EU session today, with both France and Germany posting very dismal Gross Domestic Product figures for the second quarter, while traders are anxiously awaiting the second-quarter preliminary GDP reading for the euro zone, expected to show 0.1% contraction, offseting hopes for a more firm recovery in the 18-nation currency bloc.
As of 03:42 a.m. ET, Stoxx 600 Index dropped 0.23% or 0.76 points trading around 329.26 points. the slide was led by the utilities sector falling 0.71%.
- Britain`s FTSE 100 index lost 0.06% to6,653.20
- France`s CAC 40 index lost 0.45% to 4,175.68
- Germany`s DAX 30 lost 0.31% to 9,171.82
Today, the preliminary readings of GDP in both France and Germany pointed to slowdown in the euro zone’s largest economies. The German economy unexpectedly contracted by 0.2% amid growing geopolitical tensions in Ukraine adding further negative pressure on the pace of growth of Europe`s largest eocnomy.
The French economy stagnated in the three months ending June, preliminary figures showed earlier today, prompting the eurozone`s seocnd-largest economy to slash its growth forecasts for this year and the next.
On the Ukraine crisis, Russian convoys dispatched humanitarian aid to areas controlled by pro-Russian separatists in eastern Ukraine despite attempts by the Ukrainian government to denounce any shipments of Russian supplies in the territory.
As for the Gaza Strip, Reuters reported that Israel and Hamas are expected to agree on a new truce for five days in order to reach a permanent agreement to end the deadly conflict.
In Iraq, nearly 130 US military advisors arrived to the Kurdish region of Iraq. The advisors are expected to make an assessment of the humanitarian situation and will not participate in combat operations.
Despite the detoriorating risk sentiment, losses were limited amid some strong German corporate results, including the Postash miner K+S rising as much as 2.3% in Frankfurt, after posting profit that beat analysts` average forecast. However, the shares reversed early gains falling as much as 2.7% later in teh session.
Shares in Steelmaker ThyssenKrupp rose nearly 2% around 21.40 euros, as the German group expect stronger earnings on steel-mill restructuring in Brazil and solid demand for elevators and chemicals plants.
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.