A raft of disappointing earnings reports from European heavyweights pushed the region’s stock markets to sharp losses on Thursday, while another soft inflation reading for the euro zone offered little consolation.
Meanwhile, a “selective default” by Argentina kept investors in a downbeat mood.
Inflation in the euro zone dropped to 0.4% in July from 0.5% in June, marking the lowest level since October 2009. The weakness is a setback to the European Central Bank, which in June launched a package of liquidity measures aimed at boosting growth and bringing inflation more in line with the bank’s goal of just below 2%.
In a bit better piece of news, unemployment in the currency union fell to 11.5% in June, from 11.6% in May, reaching its lowest level since September 2012.
The number of Germans without a job fell more than expected in July, while the unemployment rate was unchanged at 6.7%.
In the U.K., a survey from British lender Nationwide showed house prices in the country in July rose at the slowest pace since April last year.
All major European markets were mired in the red. The Stoxx Europe 600 index lost 0.8% to 337.54, setting it on track for a 1.3% monthly drop. Such a decline would mark the biggest monthly slide since January.
Germany’s DAX 30 index fell 0.9% to 9,503.40, poised for a 3.3% decline for July. France’s CAC 40 index gave up 0.8%, set for a 3.2% loss for the month.
The U.K.’s FTSE 100 index slipped 0.2% to 6,761.85. For the month, the U.K. benchmark looked set to outperform the other country-specific indexes with a 0.3% advance.
The euro EURUSD -0.14% slipped to $1.3385, from $1.3397 late Wednesday.
Source: Marketwatch
