Euro shares close mixed on contradictory economic data; DAX off 0.22%

Investing.com - European stocks closed mixed Friday, as contradictory economic data caused market confusion while Draghi’s words continued to weigh. 

At the close of  European trade, the EURO STOXX 50 fell 0.10%, France’s CAC 40 edged 0.11% higher, while Germany’s DAX 30 dropped 0.22%. 

Supporting shares, U.S. non-farm payrolls rose more-than-expected last month, official data showed on Friday.

In a report, the U.S. Department of Labor said non-farm payrolls rose to a seasonally adjusted 146K, from 138K in the preceding month whose figure was revised down from 171K.

Analysts had expected U.S. non-farm payrolls to rise 93K last month.
While consumer sentiment pressured shares lower with U.S. UoM consumer sentiment fell more-than-expected last month, preliminary data showed on Friday.

In a report, the University of Michigan said that consumer sentiment fell to a seasonally adjusted 74.5, from 82.7 in the preceding month.

Analysts had expected UoM consumer sentiment to fall to 82.4 last month.

Markets were jittery after ECB President Draghi on Thursday said the bank now expects the euro zone economy to contract by between 0.4% and 0.6% this year and to shrink by 0.3% to 0.9% in 2013. The ECB expects the euro zone economy to return to growth only in 2014, expanding between 0.2% and 2.2%. 

Draghi’s comments came after the ECB left rates on hold at a record low 0.75% earlier, in a widely anticipated decision. 

Sentiment was also hit after the Bundesbank cut its 2013 growth projection to 0.4% from the 1.6% predicted in June and said the German economy will grow 0.7% this year, down from its previous forecast of 1%. 

Financial stocks were broadly lower, as shares in French lenders BNP Paribas and Societe Generale slipped 0.20% and 0.17%, while Germany's Deutsche Bank and Commerzbank dropped 0.49% and 0.57% respectively. 

The telecom sector was also in focus, as France-based Alcatel-Lucent plunged 2.15% on reports it will be removed from the CAC 40 effective December 24. Gemalto will replace Alcatel on the benchmark measure. 

Deutsche Telekom added to losses, with shares tumbling 2.26%, after Germany’s biggest phone company said it will pay a dividend of 50 euro cents per share in 2013 and 2014, down from the 70 cents pledged this year. 

In London, FTSE 100 dipped 0.04%, as markets awaited an upcoming U.K. manufacturing production report. 

U.K. lenders tracked their European counterparts lower, as shares in Barclays inched down 0.03% and the Royal Bank of Scotland fell 0.25%, while HSBC Holdings retreated 0.85%. Lloyds Banking overperformed on the other hand, easing up 0.09%. 

Meanwhile, mining stocks were mixed. Giants Rio Tinto and BHP Billiton added 0.01% and 0.42% respectively, while copper producers Xstrata and Kazakhmys declined 0.29% and 0.81%.  In the euro zone, German industrial production fell more-than-expected last month, official data showed on Friday.

In a report, Destatis said that German Industrial Production fell to a seasonally adjusted annual rate of -2.6%, from -1.3% in the preceding month whose figure was revised up from -1.8%.

Analysts had expected German Industrial Production to fall -0.5% last month.