European stocks lower after weak data; Dax down 0.96%

Investing.com - European stocks were lower on Thursday, after the release of disappointing German and French economic reports and as concerns over the handling of the financial situation in Cyprus continued to weigh.

During European morning trade, the EURO STOXX 50 retreated 0.90%, France’s CAC 40 tumbled 1.04%, while Germany’s DAX 30 slid 0.96%.

Preliminary data showed that Germany's manufacturing purchasing managers' index fell unexpectedly into contraction territory this month, ticking down to 48.9 from a reading of 50.3 in February. Analysts had expected the index to rise to 50.5 in March.

Germany's services PMI fell to 51.6 in March from 54.7 the previous month, compared to expectations for a reading of 55.0.

In France, preliminary data showed that the manufacturing PMI remained unchanged at 43.9 this month, disappointing expectations for a rise to 44.3, while the services PMI slid unexpectedly to 41.9 in March from 43.7 the previous month, compared to expectations for a rise to 44.0.

The data came after the Federal Reserve announced on Wednesday that it will leave monetary policy unchanged, in spite of recent signs that the U.S. recovery is gaining traction.

Meanwhile, sentiment remained under pressure as negotiations aimed at finding an alternative solution on a bailout deal for Cyprus continued.

Financial stocks were mixed. In France, BNP Paribas dropped 0.43% and Societe Generale inched up 0.07%, while in Germany, Deutsche Bank jumped 1.26%.

Among peripheral lenders, Italian banks Unicredit and Intesa Sanpaolo declined 0.54% and 0.50%, while Spain's BBVA and Banco Santander retreated 0.27% and 0.87% respectively.

Elsewhere, Hermes International advanced 0.47% after the French luxury goods manufacturer reported operating profit for 2012 that exceeded analysts’ estimates.

In London, commodity-heavy FTSE 100 declined 0.62%, weighed by losses in mining and oil stocks.

Mining giants Rio Tinto and BHP Billiton slid 0.37% and 0.47% respectively, while copper producers Xstrata and Kazakhmys fell 0.05% and 0.64%.

Oil and gas major Anglo American added to losses, retreating 0.83%, while rival BP shed 0.33%.

Meanwhile, financial stocks were mixed. Shares in Lloyds Banking slipped 0.12% and HSBC Holdings dropped 0.52%, while Barclays and the Royal Bank of Scotland added 0.07% and 0.58%.

In the U.S., equity markets pointed to a lower open. The Dow Jones Industrial Average futures pointed to a 0.13% fall, S&P 500 futures signaled a 0.18% loss, while the Nasdaq 100 futures indicated a 0.27% decline.

Later in the day, the euro zone was to produce preliminary data on manufacturing and service sector activity later in the day.

The U.S. was to release the weekly government report on initial jobless claims, as well as industry data on existing home sales and official data on manufacturing activity in Philadelphia.