European stocks fell for the third time in four days, mirroring losses in global shares, as oil fell and a report signaled weakness in the German economy.
The Stoxx Europe 600 Index dropped 1.2 percent at 8:14 a.m. in London. A report today showed an unexpected drop in German factory orders, signaling weakness in Europe’s largest economy. The DAX Index tumbled 1.7 percent.
Equities around the world have moved more in line with oil this year, and they tracked crude lower today. All 19 Stoxx 600 groups declined, with commodity and energy producers posting the worst performances. BHP Billiton Ltd. and ArcelorMittal slid more than 3.7 percent, while Repsol SA and Tullow Oil Plc dropped at least 2.4 percent.
European stock-index futures were little changed, after an equity rally petered out late yesterday, as investors speculated on the implications for euro-area growth of worse-than-expected German export data.
Contracts on the Euro Stoxx 50 Index expiring in December fell less than 0.1 percent to 3,209 at 7:17 a.m. in London. Stocks closed little changed Wednesday, paring most of the session’s advance after data showing an increase in U.S. crude stockpiles trimmed gains in energy producers. In Asia, a less exuberant than hoped for reopening of Chinese markets today after a a week-long holiday dragged stocks down.
FTSE 100 Index futures were little changed after the index rallied for six days. The Bank of England will announce its decision on interest rates today, with economists surveyed by Bloomberg forecasting policy makers will leave the base rate at 0.5 percent. Minutes of the European Central Bank’s last policy meeting are also due.
German exports in August slumped the most since the height of the 2009 recession, according to a report from the Federal Statistics Office. The data show that Europe’s largest economy is vulnerable to risks from weakening global trade.
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Source : Bloomberg