European Stocks Lower After Weak Consumer Data

European stock markets ended a two-day rally on Thursday as economic data pointed to weak consumer demand in the region’s three biggest economies.

A YouGov/CEBR poll in the U.K. showed consumer confidence has slumped to its lowest level since May 2013, while in Germany retail sales rose less than expected in May. And in France, an index of consumer spending for that month dropped more than forecast. The European Union’s first take on June inflation data is out later and analysts are looking for stagnant prices year-on-year after deflation of 0.1% in May. German statisticians said the country’s June jobless rate was unchanged at 6.1%.

Meanwhile in Ottawa, Canada President Obama said Brexit raises “longer-term concerns about global growth” and could “freeze” U.K. and European investment.

The 27 European Union leaders met without British Prime Minister David Cameron yesterday and politicians including French Prime Minister Francois Hollande took the opportunity after the summit to remind restive citizens of the perils of leaving.

The FTSE 100 was down 0.76% at 6,311.57 after rising 3.58% yesterday, thereby erasing post-Brexit losses. In Frankfurt the Dax was down 0.64% at 9.550.43 and in Paris the Cac 40 lost 0.72% to 4,164.95.

Deutsche Bank DB and Santander (SAN) were both down more than 3% on news their U.S. units had failed Federal Reserve stress tests.

S&P 500 mini futures were down 0.10%.

The pound was recently up 0.20% against the dollar at $1.3456. Spot gold was recently down 0.26% at $1,315.76 an ounce and Brent crude pared earlier losses to trade down 0.99% at $50.11.

via The Street

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza