Europe close: Europe down ahead of ECB rates meeting

Date: Wednesday 04 Jul 2012

-European stocks fall on German services data
-Market waiting on ECB rates decision

FTSE 100:-0.2%
Dax 30: -0.33%
Stoxx 600: 0.16%
Cac 40: -0.37%
Ibex 35: -0.89%
FTSE MIB: -0.78%

The major European stock markets all closed the day down after disappointing data on the services sector in Germany and in anticipation of the European Central Bank’s interest rate decision tomorrow.

In Germany a closely watched purchasing managers index of the services sector dropped to 49.9 in June, down from an earlier estimate of 50.3.

In Italy, the statistics office revealed the country’s budget deficit rose to 8% in the first three months of this year, compared to 7% a year ago.

Tomorrow the ECB will announce its key interest rate decision with most economists forecasting a cut to a record low 0.75%.

COMPANIES

The strongest sector on the Stoxx Europe 600 index was travel and leisure, up 0.5%. The weakest was insurance, down 0.8%.

There was noticeable weakness amongst utilities stocks. The Spanish renewable energy giant, Iberdrola, dropped 5.6% while German firm EON fell nearly 2% after being downgraded by two brokers.

OTHER MARKETS

Front month futures contracts on a barrel of Brent Crude dropped 1.13% to $99.54.

The euro was down 0.61% against the dollar by 17:09 in London at $1.2531.

BS

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