The European markets are trading lower on Thursday, after data showed that German unemployment increased more than expected and Eurozone economic confidence deteriorated to a 32-month low, in June, before a crucial meeting of European Union leaders starting later.
Data from the Federal Labor Agency revealed that German unemployment rose by 7,000 in June from a month earlier compared to expectations for an increase of a more modest 3,000. In May, the number of unemployed persons increased by 1,000. The unemployment rate remained unchanged at 6.8 percent.
Meanwhile, Eurozone economic confidence deteriorated to a 32-month low in June, a European Commission report revealed. The economic confidence index fell to 89.9, the lowest since October 2009, from 90.5 in May.
Italy sold its 5 and 10- year bonds at a debt auction at a higher price and the amount raised was slightly less than the maximum target set for the sale. The Italian treasury placed 2.5 billion euros of its 4.75 percent June 2017 treasury bonds to yield 5.84 percent, which was higher than 5.66 percent paid in the previous sale on May 30.
The Euro Stoxx 50 index of eurozone bluechip stocks is falling 0.28 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, is falling 0.52 percent.
The German DAX is falling 1.05 percent and the French CAC 40 is losing 0.40 percent. The UK's FTSE 100 is losing 0.75 percent and Switzerland's SMI is dropping 0.19 percent.
In Frankfurt, Commerzbank is leading the decliners by falling 5.5 percent, after the lender issued 176.55 million new shares. Deutsche Bank is losing around 4 percent.
Infineon Technologies is losing 4.6 percent. Goldman Sachs cut the stock to "Buy" from "Conviction Buy."
Merrill Lynch raised Allianz to "Most Preferred Insurers List." The stock is falling 1.6 percent.
Lanxess is losing 2.6 percent. Morgan Stanley removed the stock from "Best Ideas List."
In Paris, BNP Paribas, Societe Generale and Credit Agricole are losing between 2.9 percent and 2.2 percent.
Renault is falling 1.4 percent, while Peugeot is up 0.4 percent.
Bouygues is dropping 1.2 percent. Barclays initiated the stock with an "Equalweight" rating.
Metal fabrication firm Vallourec is climbing 4.3 percent.
Veolia Environnement is adding around 1 percent. The utility is selling its UK regulated water activities to Rift Acquisitions Limited for 1.24 billion pounds.
In London, Barclays is declining 10.2 percent, Royal Bank of Scotland is losing 7.1 percent and Lloyds Banking is retreating 6.7 percent. HSBC is falling 2.7 percent.
Ladbrokes is declining nearly 11 percent after the company said it expects digital profits in the first half to be down "further than anticipated."
Associated British Engineering is falling 8.3 percent. The company reported a loss for the year.
Bankia is declining 4.9 percent in Madrid. Banco Popular Espanol is losing 3.5 percent.
Across Asia/Pacific, markets had a mixed outing. Japan's Nikkei 225 climbed 1.7 percent and Australia's All Ordinaries edged up 0.04 percent. China's Shanghai Composite Index lost around 1 percent while Hong Kong's Hang Seng declined 0.8 percent.
In the U.S., futures point to a lower open on Wall Street. In the previous session, the major averages ended the day firmly in positive territory as traders reacted positively to a batch of relatively upbeat U.S. economic data. The Dow rose 0.7 percent, the Nasdaq climbed 0.7 percent and the S&P 500 advanced 0.9 percent.
In the commodity space, crude for August delivery is adding $0.17 to $80.38 per barrel and August gold is losing $7.2 to $1571.2 a troy ounce.
by RTT Staff Writer
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