Forexpros - European stocks closed lower Wednesday, as worse than expected service and manufacturing data combined with additional Greek rating cuts weighed on equities .
Near the close of European trade, the EURO STOXX 50 fell 0.89%, France's CAC 40 gave back 0.52%, while Germany’s DAX dropped 0.93%. Meanwhile, in the U.K. the FTSE 100 dipped 0.20%.
The bearish sentiment was stroked when London based, Markit Economics said its composite purchasing manager index for both service and manufacturing dropped to 49.7 in February from a reading of 50.4 in January in the euro zone.
This contraction of service and manufacturing output signals additional struggles ahead for the euro zone region.
Another report showed German services and manufacturing expansion surprisingly slowed in February further adding to the equity negative session.
Meanwhile, in Greece, Fitch Rating slashed the island nations credit grade two levels to C from CCC after the country obtained approval to proceed with the bond exchange to reduce its debt burden.
Adding to the Greek fears, Bank of England Deputy Governor, Charlie Bean stated, “While the agreement is certainly welcome, there still remains a possibility that events could unfold in a disorderly and damaging fashion at some time in the future.”
TUI gave back 8% as BNP Paribas is managing the sale of 12.85 million shares priced at EUR6.05 per share.
Nexity, the French real estate company, gave back 6.5% after forecasting a slowdown in 2012 for the new homes and commercial market.
In bullish news, Cove Energy surged 25% after receiving a buy out offer from Royal Dutch Shell.
Peugot soared 12% on the automaker discussing an alliance with General Motors.
Stocks are trading lower in the United States with the Dow falling 0.23%, the S&P 500 dropping 0.19% and the Nasdaq giving back 0.41%
Investors are awaiting U.S. unemployment numbers and Germany business climate results on Thursday.
Near the close of European trade, the EURO STOXX 50 fell 0.89%, France's CAC 40 gave back 0.52%, while Germany’s DAX dropped 0.93%. Meanwhile, in the U.K. the FTSE 100 dipped 0.20%.
The bearish sentiment was stroked when London based, Markit Economics said its composite purchasing manager index for both service and manufacturing dropped to 49.7 in February from a reading of 50.4 in January in the euro zone.
This contraction of service and manufacturing output signals additional struggles ahead for the euro zone region.
Another report showed German services and manufacturing expansion surprisingly slowed in February further adding to the equity negative session.
Meanwhile, in Greece, Fitch Rating slashed the island nations credit grade two levels to C from CCC after the country obtained approval to proceed with the bond exchange to reduce its debt burden.
Adding to the Greek fears, Bank of England Deputy Governor, Charlie Bean stated, “While the agreement is certainly welcome, there still remains a possibility that events could unfold in a disorderly and damaging fashion at some time in the future.”
TUI gave back 8% as BNP Paribas is managing the sale of 12.85 million shares priced at EUR6.05 per share.
Nexity, the French real estate company, gave back 6.5% after forecasting a slowdown in 2012 for the new homes and commercial market.
In bullish news, Cove Energy surged 25% after receiving a buy out offer from Royal Dutch Shell.
Peugot soared 12% on the automaker discussing an alliance with General Motors.
Stocks are trading lower in the United States with the Dow falling 0.23%, the S&P 500 dropping 0.19% and the Nasdaq giving back 0.41%
Investors are awaiting U.S. unemployment numbers and Germany business climate results on Thursday.
