Europe Stocks Drop With German, U.K. Data In View

European stock markets traded broadly lower on Thursday, as investors focused on fresh German data and waited for the first take on U.K. growth in the second quarter.

The Stoxx Europe 600 index  slipped 0.2% to 300.50, pulling back from its highest closing level since late May, reached on Wednesday.

Shares of Orange  lost 4.9% after the French telecom firm reported a 38% fall in first-half income on the back of fierce price competition in the home market.

Chemicals major BASF SE  gave up 3.9% after reporting second-quarter earnings below expectations.

The broader European stock market digested a mixed reading on Germany’s business conditions. The Ifo business-climate index rose in July, while the expectations index moved a little lower.

On Wednesday, data from Markit signaled a solid rebound in the German private sector, driven by faster rates of expansion in both manufacturing and services. The composite PMI for the country jumped to a five-month high of 52.8 in July, the data showed.

On Thursday, however, the DAX 30 index  lost 0.6% to 8,324.88, weighed by BASF shares. Commerzbank AG  was also lower, off 3.9%, and Deutsche Bank AG   lost 0.8%.

In the U.K., investors awaited the first estimate of gross-domestic-product growth in the second-quarter.

Shares of Unilever PLC    shaved off 1.3% after the consumer-products firm warned economic conditions remained difficult throughout its markets.

Mining firms were also lower, as most metals prices moved south. Shares of BHP Billiton PLC    erased 1.3% and Rio Tinto PLC    fell 1.2%.

The FTSE 100 index  dropped 0.4% to 6,597.00.

And in France, the CAC 40 index  eased 0.3% to 3,951.06. Shares of Michelin  slumped 4.9% after the tire maker said first-half profit slid 45% and that it’s taking a 250 million-euro ($330 million) restructuring charge related to boosting manufacturing efficiency.

Source : Marketwatch