Forexpros – European stock markets were broadly lower on Thursday, as investors awaited the outcome of a summit meeting of European leaders later in the day, while shares in Ericsson tumbled after reporting weaker-than-expected earnings.
During European morning trade, the EURO STOXX 50 edged 0.2% lower, France’s CAC 40 shed 0.45%, while Germany’s DAX 30 slumped 0.75%.
Stock indices added to losses after data showed that German manufacturing output fell to a 21-month low in July, while manufacturing activity in the euro zone slumped to the lowest since August 2009.
Meanwhile, euro zone leaders were to meet in Brussels later in the day to finalize the terms of a second bailout for Greece and discuss the financial stability of the entire single currency bloc.
Shares in the financial sector were bolstered after the Financial Times newspaper reported that France and Germany reached a joint agreement on a Greek bailout package, but no details were revealed.
French lender Societe Generale saw shares climb 1.5%, Commerzbank shares jumped 2%, while peripheral lenders Banco Santander and Intesa Sanpaolo rose 1.3% and 2.1% respectively.
Shares in telecom-equipment company Ericsson tumbled 9.85% after it reported a lower-than-expected second quarter net profit of EUR340 million, as restructuring charges and a strong krona weighed on results.
The downbeat results weighed on other shares in the sector, with French-based Alcatel-Lucent dropping 5.5% and Germany’s Siemens down 1.1%.
In London, the commodity-heavy FTSE 100 shed 0.5% as miners led losses amid concerns over a slowdown in demand from China after data showed that manufacturing activity in China fell to a 28-month low in July
Mining giant BHP Billiton saw shares drop 1.65%, Rio Tinto shares fell 1.95%, while copper producers Xstrata and Kazakhmys retreated 2.7% and 2.2% respectively.
Meanwhile, the outlook for U.S. equity markets was modestly downbeat ahead of earnings reports from AT&T, Microsoft and Morgan Stanley.
The Dow Jones Industrial Average futures eased down 0.1%, the S&P 500 futures dipped 0.08%, while the Nasdaq 100 futures shed 0.3%.
Later in the day, the U.S. was to release a weekly government report on initial jobless claims, as well as a report on manufacturing activity.
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