European stocks hit the skids on Wednesday, as investors were spooked by gloomy economic news from the U.S. and China.
With the global economic recovery facing serious headwinds and the Greek debt crisis still unresolved, markets failed to build on modest gains from the previous few sessions.
The Euro Stoxx 50 index of eurozone blue chippers unofficially lost 1.08 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, fell 0.98 percent.
Unofficially around Europe, the German DAX shed 1.05 percent and the French CAC 40 slipped 1.05 percent. The UK's FTSE 100 lost 1.02 percent and Switzerland's SMI shed 0.89 percent.
Handset maker Nokia lost another one percent in Frankfurt. Several analysts reduced their price targets on the stock after Nokia cut its second-quarter sales target for Devices & Services segment.
Lanxess slid 2.9 percent after a report said the diversified chemicals firm is in talks to buy Belgian chemicals group Taminco NV.
Tognum was flat as HSBC reduced its rating on the stock to "Neutral" from "Overweight." Construction firm Hochtief added 0.9 percent. UBS raised its rating on the stock to "Buy" from "Neutral."
Nomura left airline Lufthansa at "neutral" with a target price of 17.70 euros. The stock was down 0.63 percent.
In Paris, Unibail Rodamco fell 1 percent. Morgan Stanley raised its price target on the stock to 158 euros from 145 euros.
Schneider Electric, which announced $2 billion purchase of Spain's Telvent, lost 1.3 percent
Insurer Axa rose 1.9 percent. The company said it expects 1.5 billion euros of cost savings by 2015 in mature markets. The company will sell its Canadian business for C$2.6 billion.
Plumbing products maker Wolseley lost 1.8 percent. The company reported a rise in third-quarter trading profit.
Hammerson added 1.6 percent, as the real estate investment trust reportedly received a broker upgrade.
Northumbrian Water Group is fell 0.9 percent. The company reported a marginal rise in full year pre-tax profit.
Tate & Lyle Plc gained 5 percent as Credit Suisse raised its earnings estimate for the maker of Splenda artificial sweetener.
De La Rue Plc slipped 2.9 percent after Oberthur Technologies said it has no plans to make another takeover bid for cash-handling equipment maker.
Banks were weaker as the International Monetary Fund and European Union continued talks about new loans for Athens, which is in danger of not being able to cover its financial needs next year.
A deal to extend the maturity of Greek bonds and provide Athens with additional funding hinges on their adoption of severe austerity measures.
In London, lender Lloyds Banking group dropped 3.5 percent. Morgan Stanley lowered its price target on Lloyd to 53 pence from 57 pence.
Banca Monte dei Paschi SpA sank 7.6 percent in Milan as the Italian lender's controlling shareholder sold 450 million shares,
In economic news from around the globe, China's manufacturing growth eased in May, generating concerns about demand for resources. The Purchasing Managers' Index dropped to 52 from 52.9 in April, the China Federation of Logistics and Purchasing said.
Private sector employment in the U.S. increased by much less than anticipated in the month of May, according to a report released by payroll processor ADP.
The report said private sector employment increased by 38,000 jobs in May following a downwardly revised increase of 177,000 jobs in April. Economist had expected an increase of about 170,000 jobs.
Meanwhile, U.S. manufacturing dropped to its lowest level since September 2009, according to data released moments ago by the Instutite for Supply Management.
The ISM's manufacturing index was at 53.5 in May versus 60.4 in April. It was the steepest one-month drop since 1984.
For comments and feedback: editorial@rttnews.com