News Column

European Stocks Slide On Gloomy German Data

August 28, 2014

BRUSSELS (Alliance News) - European stocks fell Thursday, trimming recent gains after the latest in a string of downbeat reports on Germany's economy.

German unemployment unexpectedly rose in August as the euro zone's largest economy continued to show signs of strain. The number of people out of work climbed a seasonally adjusted 2,000 to 2.901 million in August, official data showed.

Meanwhile, euro zone economic confidence weakened more-than-expected in August to its lowest level in eight months.

The economic confidence index fell to 100.6 in August, the lowest score since December, from 102.1 in July, the European Commission said Thursday.

The Euro Stoxx 50 index of eurozone bluechip stocks lost 1.01%, but remains up 1.7% year-to-date.

The German DAX lost 1.27% and the French CAC 40 dropped 0.7%. The UK'sFTSE 100 eased 0.37%.

In Frankfurt, Lufthansa dropped 3%, after its subsidiary Germanwings' pilots announced plan to strike on August 29 to attain their demands for better early retirement provisions.

Meanwhile, Draegerwerk picked up 2.5% after Berenberg raised the stock to "Buy" from "Hold."

In Paris, Gemalto slipped 0.8%. The security-software maker's first-half revenues missed estimates.

Eiffage rose 3.7% after saying it expects to boost earnings and reduce net debt in 2014.

Vivendi was down 0.2%. The firm said it received two binding offers for its Global Village Telecom or GVT unit in Brazil, from Telecom Italia S.p.A and Spanish telecom operator Telefonica SA .

Essilor International, which announced first-half results, is gaining 5%.

In London, Rio Tinto, Anglo American, Antofagasta and BHP Billiton were down amid weak iron ore prices.

Online supermarket Ocado Group plunged 15% after a downgrade from brokerage firm Redburn.

The US economy expanded faster during the second quarter than people had previously estimated, according to updated government statistics released on Thursday.

Revised figures announced by the US Commerce Department showed that Gross Domestic Product, a broad measure of economic activity, rose by 4.2% in the April-to-June period.

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Source: Alliance News

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