European stocks lower after weak Asia data

European equities traded lower on Thursday with sentiment dented by data from Asia’s two largest economies, Japan and China.

The pan-European STOXX 600 was over 0.8 percent lower.

London’s FTSE 100 index was off by around 0.8 percent while the French CAC was roughly 0.7 percent lower after paring some losses. The German DAX was down by 0.5 percent after being sharply lower in early trade.

Investors in Europe appear cautious as economic data out of Asia’s top two economies heightened concerns over growth.

Japan’s core machinery orders fell 3.6 percent in July from a month earlier, missing expectations for a rise of 3.7 percent.

Over in China, the consumer price index (CPI) rose 2 percent in August from a year earlier, beating expectations for a 1.8 percent gain and up from 1.6 percent in July. However, the producer price index (PPI) declined 5.9 percent — the 42nd consecutive month of declines – signaliing that deflation remains a risk for the world’s second largest economy.

Stocks to watch

Several London-listed companies reported earnings on Thursday. British insurer Lloyd’s of London saw pre-tax profit fall 28 percent in the first half of the year to £1.19 billion ($1.83 billion) from £1.65 billion in the same period last year. The company’s chairman, John Nelson, told CNBC that the investment conditions have been “very difficult” causing investment income to half, resulting in the big drop in profit.

U.K. fashion retailer Next reported a 7.1 percent rise in first-half profit on Thursday and raised its dividend, while struggling supermarket chain Morrisons said underlying profit before tax plunged 35 percent in the first half of 2015. Next shares were 1.5 percent higher Morrisons saw its share price fall 3.9 percent.

Shares in British electronics retailer Dixons Carphone were 1.8 percent higher after it said that first quarter like-for-like revenues jumped 8 percent.

Miner BHP Billiton plunged over 5.2 percent after its research firm, Macquarie, cut the price target for the company’s Australian-listed shares. The weak data out of China also weighed on other basic resources companies including Glencore and Anglo American which were both in the red.

Continued weakness in the oil price hit the likes of Seadrill and Tullow Oil which saw shares off over 4.2 percent and 5.8 percent respectively. Germany energy firm E.ON was also dragged deep into negative territory.

The technology sector is always one to watch after any Apple launch event. On Wednesday, the U.S. electronics giant revealed its upgraded iPhone 6s and 6S Plus with new features, as well as other products including a bigger-sized iPad Pro. Investors were left unimpressed with Apple’s event as shares closed lower in U.S. trade. In Europe, Apple supplier ARM – the British semiconductor maker – was down around 0.2 percent.

In other news, the authorities’ grip on the migrant crisis appears to be weakening in Europe. On Wednesday, Danish police closed a motorway and rail links with Germany in a bid to stem the flow of refugees heading north to Sweden.

Elsewhere, the Bank of England is expected to keep interest rates and asset purchases unchanged when it announces its latest monetary policy decision this afternoon.

Source: CNBC