The European stock indices fall despite positive data

03.08.2015

On Monday, European stock indices fall, despite a series of optimistic corporate earnings reports, as disappointing manufacturing data in China highlighted concerns about the weakness of global economic growth.

During European morning trade STOXX EURO 50 fell 0.30%, France's CAC 40 lost 0.23%, while the German DAX 30 fell 0.42%.

Market sentiment worsened after data showed that the index of business activity in the manufacturing sector (PMI) from Caixin for July, released on Monday, fell to 47.8 from 48.2 in the previous month. Analysts had expected the index to rise to 48.3 this month.

Also on Monday, the Markit research group said that the final value of Spanish manufacturing PMI fell to 53.6 last month, from 54.5 in June, compared to expectations of 54.3.

The French lenders Societe Generale (PARIS: SOGN) and BNP Paribas (PARIS: BNPP) lost 0.10% and 0.59%, while German Deutsche Bank (XETRA: DBKGn) and Commerzbank (XETRA: CBKG) rose 0.17% and 1.59%.

Commerzbank previously reported that its quarterly net profit rose more than doubled, beating forecasts.

Among the peripheral lenders, shares of Intesa Sanpaolo (MILAN: ISP) rose 0.57%, shares of Unicredit (MILAN: CRDI) lost 0.66%, while the shares of the Spanish BBVA (MADRID: BBVA) and Banco Santander (MADRID: SAN) decreased by 0.12% and 1.14% respectively.

Shares of Heineken (AMS: HEIN) jumped 3.09% after the third-largest brewer reported a more than expected sales in the first half.

In addition, shares of water company Veolia Environnement (PARIS: VIE) fell 0.74%, despite reports show a profit jump in the first half of the year almost tripled thanks to cost-cutting and improved waste management.

London's FTSE 100 lost 0.14%, being under the pressure of a sharp decline in the mining sector.

Shares of Rio Tinto (LONDON: RIO) and Glencore (LONDON: GLEN) fell 1.55% and 1.60% respectively, while the shares of Bhp Billiton (LONDON: BLT) and Anglo American (LONDON: AAL) fell 1.52% and 1.65%.

Meanwhile, financial stocks are mixed. For example, shares of Barclays (LONDON: BARC) weakened by 0.54%, shares in Royal Bank of Scotland (LONDON: RBS) lost 1.93%, while shares of Lloyds Banking (LONDON: LLOY) gained 0.58% and shares of HSBC Holdings (LONDON: HSBA) rose 1.38%.

Earlier on Monday, HSBC Holdings reported an increase in profit and said it plans to sell its Brazilian units.

In the US, equity markets pointed to a lower open. Futures of Dow Jones Industrial Average show a 0.13% decline, futures of S&P 500 indicate a 0.18% drop, while the Nasdaq 100 futures reported a decrease of 0.29%.

Back Next suggested article