European stocks extended their June swoon on Wednesday, after the head of the U.S. Federal Reserve gave no indication of further support measures for the world's largest economy.
In his first comments since last Friday's abysmal jobs report, Fed Chairman Ben Bernanke acknowledged Tuesday afternoon that the economy has been weaker than expected so far in 2011, but insisted that growth will pick up in the second half of the year.
Banking stocks were hurt by reports that Germany insists the private sector bear some of the burden of extending the terms of Greek debt.
Markets were weaker across Europe, with losses among miners particularly pronounced.
The Euro Stoxx 50 index of eurozone bluechip stocks unofficially lost 0.83 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, shed 0.69 percent.
Unofficially around Europe, German DAX dropped 0.61 percent and the French CAC 40 fell 0.88 percent. The UK's FTSE 100 slid 0.95 percent and Switzerland's SMI lost another 1.17 percent.
Energy stocks fought back from early losses after OPEC announced it will hold its output quota.
Saudi Arabia was pushing to raise production in order to keep prices between $90 and $100 a barrel as the global economy struggles to cope with high prices. U.S. crude oil for July delivery jumped back above $100 a barrel on the news.
Eni SpA and Total SA were little changed.
Total sold its 6.4 percent in Norwegian gas pipeline Gassled to Germany insurer Allianz. Allianz shares dropped 0.82 percent.
Drug giant Merck & Co. Inc. and Austrian biotech firm Intercell AG the termination of Phase II/III clinical trial evaluating Staphylococcus aureus vaccine against a deadly hospital infection. Merck shares slipped 0.78 percent, while Intercell lost 22 percent.
Nomura reduced its price target on Germany's Commerzbank to 3.50 euros from 4.50 euros, while ING raised its rating on the stock to "Buy" from "Hold." Shares fell 2.08 percent.
Meanwhile, the Wall Street Journal reported that Deutsche Bank is revamping its clearing unit to bring a series of businesses under one umbrella. DB shares lost 1.4 percent.
Siemens was down 0.93 ercent. HSBC reduced its price target on the stock to 115 euros from 125 euros.
Morgan Stanley raised its price target on Basf to 77 euros from 72 euros. However, Basf eased 0.58 percent.
RWE is losing 0.18 percent, while E.ON added 1 percent. Morgan Stanley upgraded its rating on both utilities.
Kabel Deutschland lost 5 percent after reporting a full-year loss that widened from last year owing to refinancing related one-off expenses.
In Zurich, UBS lost 2.11 percent. Goldman Sachs cut its price target on the stock to 23.30 Swiss francs from 23.40 francs.
On the economic front, German shipments declined more than expected in April, pushing down the trade surplus below expectations. Exports fell by calendar and seasonally adjusted 5.5 percent month-on-month in April, after rising 7.2 percent in March.
The eurozone economy expanded 0.8 percent sequentially in the first quarter, second estimates published by Eurostat showed. That follows 0.3 percent expansion in the fourth quarter of 2010. The growth rate matched flash estimate released on May 13.
For comments and feedback contact: editorial@rttnews.com
May 08, 2026 15:50 ET Manufacturing and services sector survey results and labor market data from main economies were the highlight on the economics news front this week. Factory orders and jobs report dominated the news flow in the U.S. Similarly, industrial production data from German garnered attention in Europe. In Asia, purchasing managers’ survey results from China and the central bank decision from Australia were in focus.