European stocks push lower as Syria concerns weigh; Dax down 0.62%

Investing.com - European stocks pushed lower on Wednesday, despite globally positive euro zone data as renewed concerns over a potential U.S. military strike against Syria weighed on market sentiment and as investors eyed the European Central Bank's upcoming policy statement.

During European afternoon trade, the EURO STOXX 50 retreated 0.87%, France’s CAC 40 declined 0.90%, while Germany’s DAX 30 slid 0.62%.

Data showed that the final reading of Germany’s services PMI came in at 52.8 in August, up from a preliminary reading of 52.4. The euro zone’s services PMI dipped to 50.7, from an initial estimate for 51.0.

Meanwhile, data showed that euro zone retail sales rose by a seasonally adjusted 0.1% in July, below expectations for a 0.4% increase.

A separate report showed that the euro zone economy expanded by 0.3% in the second quarter, unrevised from the initial estimate.

But 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.

Financial stocks extended losses, as BNP Paribas and Societe Generale tumbled 1.37% and 1.63%, while Germany's Deutsche Bank retreated 0.46%.

Among peripheral lenders, Spanish banks BBVA and Banco Santander slid 0.57% and 0.74% respectively, while Italy's Unicredit and Intesa Sanpaolo plummeted 2.46% and 2.68%.

Iliad added to losses, plunging 3.45%, after Xavier Niel, the founder of the French low-cost mobile-phone carrier, sold a 3% stake valued at about EUR320 million based on Tuesday's closing price.

In London, FTSE 100 shed 0.43%, even as data showed that activity in the U.K. services sector expanded at the fastest rate in six-and-a-half years in August.

U.K. lenders continued to track their European counterparts lower, as shares in HSBC Holdings dipped 0.01% and Barclays fell 0.27%, while Lloyds Banking and the Royal Bank of Scotland lost 1.20% and 2.10% respectively.

Ryanair also remained sharply lower, down 13.07%, after the discount airline company said it may fall short of its full-year earnings targets after a summer heat wave weighed on bookings.

On the upside, Vodafone was one of the top performers, jumping 1.58%, following the announcement earlier in the week that Verizon agreed to buy the company’s 45% stake in Verizon Wireless for USD130 billion.

In the U.S., equity markets pointed to a steady to lower open. The Dow Jones Industrial Average futures pointed to a 0.08% loss, S&P 500 futures signaled a 0.03% dip, while the Nasdaq 100 futures indicated a 0.02% gain.

Later in the day, the U.S. was to publish a report on the trade balance.