As the World Bank slashed its growth forecast and unsatisfactory commodity trade data from China triggered worries over the country’s economy, European stocks were down on Wednesday’s open.
EURO STOXX 50 shed 0.77%, France’s CAC 40 slipped 0.68%, and the German DAX 30 retreated 0.64%.
Financial stocks were also broadly lower, as French lenders BNP Paribas and Societe Generale plummeted 0.98% and 1.01% respectively. Meanwhile, German Deutsche Bank plunged 0.92%.
Elsewhere among peripheral lenders, Italian lenders Intesa Sanpaolo and Unicredit declined 0.57% and 2.25%. Spain’s Banco Santander and BBVA lost 0.24% and 0.58% respectively.
In more positive news, German utility supplier E. ON SE NA shares surged 1.99% as the firm was fixed to seal its division into two at its yearly shareholder meeting on Wednesday.
Meanwhile, FTSE 100 sank 0.18% in London as UK lenders tracked their European counterparts broadly lower.
Lloyds Banking and Barclays shares tumbled respectively at 0.87% and 0.98%. Meanwhile, the Royal Bank of Scotland dropped 1.09%, and HSBC Holdings shares inched up 0.08%.
In other news, mining stocks were significantly higher on the commodity-heavy index. Antofagasta added 0.55% and Glencore rocketed 0.77%, while Fresnillo advanced 0.87% and Anglo American soared 0.92%.
J Sainsbury PLC shares were up 2.61% after the supermarket chain announced a lower-than-expected decline in first-quarter sales and assured its clothing sector was doing well.
World Bank, Chinese Economy Woes
The World Bank cut its global growth forecast for 2016 to 2.4% from 2.9%, mentioning “sluggish growth in advanced economies, stubbornly low commodity prices, weak global trade, and diminishing capital flows” as reasons.
Meanwhile, data earlier revealed that China’s trade oversupply expanded to $49.98 billion in the previous month from $45.56 billion in May as well. The report read that exports shed at an annualized rate of 4.1% last month, while imports retreated 0.4%.
According to analysts, they had anticipated that trade surplus to widen to around $58.00 billion previously in May.
Elsewhere, US equity markets indicated a steady open. Both the Dow Jones Industrial Average and S&P500 futures dipped 0.01%, while the Nasdaq 100 futures bore a 0.03% drop.
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