European Markets Turn Positive, But Miners Under Pressure
Paris (Aug 10) The European markets mostly turned positive on Monday afternoon, even after Eurozone investor confidence unexpectedly weakened in August. Mining stocks were under pressure in response to data from China .
In economic news, survey results from Sentix showed that Eurozone investor confidence unexpectedly weakened in August, thanks to the uncertainty regarding the Chinese stock market outlook and the dampened expectations for the economy in Asia excluding Japan .
The investor confidence index dropped to 18.4 from 18.5 in July, while economists had expected a higher score of 20.
Meanwhile, the Bank of France said the French economic growth is set to accelerate in the third quarter. Gross domestic product is likely to grow 0.3 percent in the third quarter, according to the bank's first estimate based on its monthly index of business activity.
In China , data released over the weekend showed a sharp reduction in foreign and domestic demand as well as a slump in producer prices.
Exports decreased 8.3 percent in July, reversing the previous month's 2.8 percent increase. The decline was bigger than the expected 1.5 percent fall. At the same time, imports declined 8.1 percent after a 6.1 percent fall, while it was expected to drop 8 percent.
Producer prices extended its decline for 41 straight months in July and was the lowest since 2009. Producer prices decreased 5.4 percent from last year, which was bigger than the prior month's 4.8 percent drop.
The German DAX, the French CAC 40 and Switzerland's SMI were moderately higher, while the FTSE 100 index of the U.K. fell 0.7 percent.
In Frankfurt , Allianz gained 1.5 percent and Deutsche Telekom added 1.2 percent.
Henkel , Siemens and K+S made moderate gains.
Meanwhile, drug maker Merck KgaA and utility E.ON fell 1 percent each.
ThyssenKrupp and HeidelbergCement were losing moderately.
Telecommunications provider QSC dropped over 1 percent after reporting second-quarter results.
In Paris , technology stock Cap Gemini rose 1.3 percent and Safran advanced 1.1 percent. Builder Vinci gained moderately.
Technip and Total dropped 2 percent and 1 percent, respectively, as oil fell.
Air France KLM , which reported traffic data for July, fell notably.
In London , miners declined in response to data out of China . Anglo American, Antofagasta and BHP Billiton dropped between 2.4 percent and 2.1 percent.
Lloyds Banking and HSBC lost 2.1 percent and 1.7 percent, in that order.
Meanwhile, Barratt Developments rose 1.4 percent and cruise operator Carnival added 1 percent.
The Asian stocks recovered from early falls to end mixed as disappointing data out of China only served to heighten expectations of more policy stimulus.
In the U.S., futures point to a higher open on Wall Street . In the previous session, the major U.S. averages fell about 0.3 percent each after July's employment numbers came in slightly below economists' expectations but kept alive expectations of a rate hike in September.
Crude for September delivery rose $0.08 to $43.95 per barrel, while December gold rose $1.4 to $1095.5 a troy ounce.
Source: KitcoNews
