The French market is in negative territory in afternoon trading Thursday, ahead of the conclusion of the Federal Open Market Committee meeting in the U.S. There is talk that the Fed may give clues on another round of quantitative easing, while some analysts believe it is not possible as the Operation Twist is yet to complete its course.
The monthly bulletin released by the European Central Bank said Euro area policymakers should act effectively to contain renewed intensification of financial market tensions as it has the potential to disrupt the balance of risks for both growth and inflation.
Meanwhile, IHS Global Insight Chief UK and European Economist Howard Archer said the marginal increase in Eurozone's industrial production in July does not dilute concerns over the health of the sector or reduce belief that the bloc is headed for further GDP contraction in the third quarter.
Elsewhere, Dutch Prime Minister Mark Rutte has claimed victory for his free-market and pro-European VVD Party in Wednesday's parliamentary elections. The election was widely seen as a referendum on the Netherlands' continued commitment to the 27-member European Union amid the ongoing sovereign debt crisis.
The Euro Stoxx 50 index of eurozone bluechip stocks is falling 0.60 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, is losing 0.22 percent.
The CAC 40 index is losing 0.74 percent.
EADS is declining 8.5 percent. The plane maker confirmed it is in talks for a possible merger with BAE Systems to create an industry giant that would surpass rival Boeing Co. in terms of sales. Citigroup cut the stock to "Neutral" from "Buy."
Vinci is losing 2.7 percent and Bouygues is falling 1.8 percent.
Societe Generale, Credit Agricole and BNP Paribas are declining between 2.2 percent and 1.4 percent.
Peugeot is losing 1.5 percent while Renault is fractionally higher.
Bucking the trend, Alcatel Lucent is gaining 1.7 percent.
Elsewhere in Europe, the German DAX is losing 0.40 percent and the UK's FTSE 100 is losing 0.06 percent. Switzerland's SMI is gaining 0.11 percent.
Across Asia/Pacific, major markets ended mostly lower. Australia's All Ordinaries slid 0.53 percent, China's Shanghai Composite Index dropped 0.76 percent and Hong Kong's Hang Seng fell 0.14 percent. Japan's Nikkei 225, however, added 0.4 percent.
In the U.S., futures point to a lower open on Wall Street. In the previous session, the major averages ended in positive territory for the second straight day. The Dow inched up 0.1 percent, the Nasdaq rose 0.3 percent and the S&P 500 edged up 0.2 percent.
In the commodity space, crude for October delivery is adding $0.06 to $97.07 per barrel while gold is losing $1.6 to $1732.1 a troy ounce.
by RTT Staff Writer
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