European stocks may fall on Friday, tracking weakness on Wall Street overnight and in Asia this morning on concerns over the slow pace of U.S. economic recovery. Investors may remain somewhat cautious ahead of second-quarter GDP data from the U.S scheduled to be released later in the day.
Closer home, British consumer confidence declined for the fifth straight month in July, with consumers growing more cautious of the outlook for the economy and their personal finances, the results of a closely watched survey showed on Friday.
Market research firm GfK NOP said its consumer confidence index slid to -22 in July from -19 in the previous month. Analysts had expected the sentiment indicator to fall to -20. The deteriorating confidence raises the risk of the economy slumping to a double-dip recession.
The dollar continued to struggle after falling sharply to a three-month low against a basket of currencies yesterday, while the Dow futures are down 21 points.
Asian stocks fell on Friday, dragging the MSCI Asia Pacific Index down by about half a percent, after downbeat comments from a Federal Reserve official, higher unemployment in Japan and a profit warning from Macquarie Group overshadowed increased profit targets at Sony Corp. and Panasonic Corp.
St. Louis Federal Reserve Bank President James Bullard spooked the U.S. markets on Thursday when he said that the Fed's current policies are putting the U.S. at risk for "a Japanese-style deflationary outcome within the next several years."
In domestic corporate news, Italian jeweler Bulgari confirmed its full-year outlook after posting a modest profit in the second quarter. Utility Enel reported a 31% decline in its first-half profit.
French glass and building materials maker Cie. de Saint-Gobain SA said its first-half net profit nearly quadrupled, helped by a sharp rebound in sales in the second quarter of 2010.
Spain's wind turbine maker Gamesa Corporacion Tecnologica SA revised downwards its sales targets for the current year and 2011.
Cheung Kong Infrastructure Holdings, Hongkong Electric Holdings, Li Ka Shing Foundation and Li Ka Shing (Overseas) Foundation announced a formal offer to acquire a group of companies engaging in the business of electricity distribution in the United Kingdom from EDF Energy Plc and CSW Investments.
Telecommunications equipment maker Alcatel-Lucent reported second quarter net loss of EUR 184 million or EUR 0.08 per share compared to a profit of EUR 14 million or EUR 0.01 per share in the corresponding quarter last year.
On Thursday, the European markets pared early gains to finish mostly in the red, taking cues from the the U.S markets. The German DAX Index shed 0.71%, France's CAC 40 lost 0.50% and the UK's FTSE 100 Index edged down 0.10%.
On Wall Street, stocks ended moderately lower on Thursday, as mixed indications from the Federal Reserve, the labor market and the earnings front prompted some selling in the equity markets. The Dow slipped 0.29%, the Nasdaq edged down 0.57% and the S&P 500 eased 0.42%.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.