European stocks lower ahead of data, Syria weighs; Dax down 0.29%

Investing.com - European stocks were lower on Wednesday, ahead of the release of euro zone data as renewed concerns over a potential U.S. military strike against Syria weighed on market sentiment.

During European morning trade, the EURO STOXX 50 retreated 0.58%, France’s CAC 40 declined 0.51%, while Germany’s DAX 30 fell 0.29%.

Concerns over possible U.S. military strikes against Syria weighed on sentiment after top congressional leaders, including Republican House Speaker John Boehner and Democrat Nancy Pelosi said they would back President Obama's call for military intervention.

Global equities also came under pressure after upbeat U.S. manufacturing data on Tuesday added to expectations that the U.S. central bank could start to unwind its asset purchase program at its upcoming policy meeting on September 17-18.

In the euro zone, Markit research group said Spain's services purchasing managers' index rose to 50.4 in August, from a reading of 48.5 the previous month, beating expectations for a rise to 50.0 and hitting the highest level since June 2011.

Financial stocks were broadly lower, as BNP Paribas and Societe Generale slid 0.36% and 0.09%, although Germany's Deutsche Bank added 0.14%.
 
Among peripheral lenders, Spanish banks BBVA and Banco Santander slipped 0.16% and 0.18% respectively, while Italy's Intesa Sanpaolo and Unicredit declined 0.72% and 1.32%.

Telecom companies were also trending lower, as Orange edged down 0.06% and Deutche Telekom dropped 0.51%, while Spain's Telefonica retreated 0.62%.

In London, FTSE 100 shed 0.45%, as U.K. lenders tracked their European counterparts lower.

Shares in Barclays fell 0.18% and the Royal Bank of Scotland tumbled 1.25%, while Lloyds Banking plummeted 1.50%. HSBC Holdings overperformed however, gaining 0.53%.

Vodafone was one of the top performers, up 1.67%, supported by the announcement earlier in the week that Verizon agreed to buy the company’s 45% stake in Verizon Wireless for USD130 billion.

Elsewhere, Ryanair saw shares dive 13.66% after the discount airline company said it may fall short of its full-year earnings targets after a summer heat wave weighed on bookings.

In the U.S., equity markets pointed to a moderately lower open. The Dow Jones Industrial Average futures pointed to a 0.09% fall, S&P 500 futures signaled a 0.09% loss, while the Nasdaq 100 futures indicated a 0.04% dip.
 
Later in the day, the euro zone was to release data on retail sales, while the U.S. was to publish a report on the trade balance.