European stocks slide as weak euro zone data fuels slowdown worries - CNBC

European stocks slipped Friday as worse-than-expected economic data intensified concerns around slowing global growth.

The pan-European Stoxx 600 dropped almost 0.6 percent, with most sectors and major bourses turning negative. Equities were initially positive earlier in the session.

A slew of negative economic data weighed on investor sentiment on the final trading day of the week. IHS Markit's flash euro zone composite Purchasing Managers' Index (PMI) fell to 51.3 in March from 51.9 the previous month — analysts were expecting a reading of 52.

French and German numbers also disappointed, with IHS' PMI figures for both economies coming in below expectations. Germany's manufacturing sector contracted for the third month in a row, data showed. The yield on the country's 10-year government bond turned negative for the first time since October 2016 as a result.

Looking at individual stocks, Nokia tumbled to the bottom of the Stoxx 600 after the Finnish telecommunications firm published its annual report. The firm said in the report Thursday that it did not plan to take on any new business in Iran this year, citing conflicting U.S. and European trade policies. Shares fell 4.7 percent.

On the other end, Aggreko climbed to the top of the European benchmark after Stifel upgraded the stock to "buy" from "hold." Shares of the U.K. power supplier rose 4 percent.

In corporate news, Deutsche Bank published its annual report Friday. Deutsche said in the report that management board members got their first bonuses in four years in 2018. The German lender has hit headlines recently amid merger talks with domestic rival Commerzbank. Shares initially rose, but came under pressure later in the morning.

The disappointing economic data added to market jitters over the Federal Reserve's subdued outlook. The U.S. central bank on Wednesday abandoned all plans to raise interest rates this year, citing slowing economic activity, and said it would halt the decline of its balance sheet in September.

Brexit was another area of focus for traders. The European Union agreed to an extension to the date of the U.K.'s withdrawal from the bloc, but said the length of the delay would depend on whether Parliament approves Prime Minister Theresa May's Brexit deal next week.

Elsewhere, the Bank of England kept rates unchanged on Thursday, and said its economic outlook would "continue to depend significantly" on the "nature and timing" of Brexit.

In other political news, Chinese President Xi Jinping arrived in Rome Thursday, where he is to sign a deal with the government that sees Italy join Beijing's "Belt and Road" infrastructure plan. The move would make Italy the first G7 country to back the initiative, much to the dismay of the U.S. and EU.

Let's block ads! (Why?)

https://www.cnbc.com/2019/03/22/europe-markets-stocks-seen-mixed-amid-dovish-fed-brexit-uncertainty.html

2019-03-22 09:57:58Z
52780246887255

Bagikan Berita Ini