European stocks mixed after French/German data; DAX up 0.04%

Investing.com - European stock markets were mixed on Wednesday, as market sentiment was hit after downbeat French and German manufacturing data and amid concerns that France may lose its Triple A credit rating.

During European morning trade, the EURO STOXX 50 eased down 0.01%, France’s CAC 40 rose 0.11%, while Germany’s DAX 30 inched up 0.04%.

Preliminary data showed earlier that French and German manufacturing activity fell to a 28-month low in November. In a report, Markit said that its preliminary German manufacturing purchasing managers’ index fell to 47.9, while its French index declined to 47.6.

Market sentiment was also hit following reports saying that Belgium and France were in fresh talks over an existing rescue deal for Dexia, stirring worries about the potential for an increased fiscal burden on France, which could have implications for France's AAA credit rating.

Financial stocks were mixed as shares in France’s BNP Paribas and Societe Generale tumbled 2.38% and 1.86% respectively, while German lender Commerzbank surged 3.48% and Spanish Banco Santander advanced 0.46%.

Meanwhile, Deutsche Bank saw shares slip 0.10% as it was considering all strategic options for its global asset management division.

Elsewhere, Areva plunged 3.89% after denying reports saying that the French nuclear reactor maker was planning over 1,000 job cuts in France as part of a strategic overhaul under new management.

In London, FTSE 100 declined 0.13%, as mining stocks tracked commodity prices lower.

Xstrata and Kazakhmys were among the top losers, as shares tumbled 2.13% and 0.88% respectively.

Mining giants Rio Tinto and Bhp Billiton contributed to losses, with shares plunging 1.73% and 1.59%, while British Petroleum declined 1.32%.

Meanwhile, U.K. lenders were also broadly lower, shadowing their European counterparts. The Royal Bank of Scotland dropped 1.79% and HSBC Holdings slumped 1.15%, while Lloyds Banking and Anglo America plummeted 1.07% and 0.83% respectively.

In the U.S., equity markets pointed to a lower open. The Dow Jones Industrial Average futures pointed to a fall of 0.53%, S&P 500 futures signaled a 0.56% drop, while the Nasdaq 100 futures indicated a 0.50% decline.

Earlier Wednesday, China's November HSBC preliminary manufacturing purchasing managers’ index fell to a 32-month low of 48.0, dropping below the 50-point level that denotes a contraction, as new orders slumped.

Later in the day, the U.S. was to publish a string of economic data ahead of Thursday’s Thanksgiving holiday, including a government report on durable goods orders, the weekly report on initial jobless claims as well as data on crude oil
stockpiles, inflation, personal income and personal spending.

Meanwhile, the University of Michigan was to release revised data on inflation expectations and consumer sentiment.