European Markets Dropped On Weak China Data

(RTTNews) - The European markets were up in early trade Friday, but ended the session solidly in the negative territory. Disappointing manufacturing data from China weighed on investor sentiment, as well as continued weakness in commodity prices. Mining stocks were among the weakest performing stocks at the end of the trading week.

China's manufacturing sector contracted again in July and at an accelerated pace, the latest survey from Caixin revealed on Friday, with a flash PMI score of 48.2. That marked a 15-month low score, and it was well shy of forecasts for a score of 49.7.

Officials from the European Commission, the European Central Bank and the International Monetary Fund will meet in Athens today to start detailed discussions with the Greek government on a new bailout deal.

The Euro Stoxx 50 index of eurozone bluechip stocks decreased by 0.95 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, lost 1.02 percent.

The DAX of Germany dropped by 1.43 percent and the CAC 40 of France fell by 0.58 percent. The FTSE of the U.K. declined by 1.13 percent and the SMI of Switzerland finished lower by 0.62 percent.

In Frankfurt, BASF declined by 4.81 percent, after reporting disappointing second-quarter results.

Volkswagen dropped by 3 percent and BMW lost 2.5 percent. Daimler surrendered 2.44 percent and Continental weakened by 1.7 percent.

In Paris, Air France-KLM climbed by 0.59 percent. The airline announced additional cost-cuts, while also trimming its capacity expansion plan for winter.

Alcatel-Lucent rose by 1.66 percentt, after Nokia received approval from the European Commission for the pending acquisition of the company.

Danone, which reported lower profit for the first half, finished lower by 0.51 percent.

Thales surged by 7.45 percent, after it reported a stronger than expected profit for the first half of the year.

Peugeot decreased by 5.14 percent and Renault lost 2.46 percent. Car parts maker Valeo also dropped by 1.36 percent.

In London, Vodafone gained 2.8 percent. The telecom giant said its first-quarter trading was consistent with management's expectations.

Anglo American declined by 3.52 percent after it posted a pre-tax loss in the first-half of the year. The miner also announced 6,000 job cuts.

Diageo dropped by 2.46 percent, after it received an inquiry from the U.S. SEC.

Temporary power services provider Aggreko said it now expects the 2015 interim and full year results to fall short of current market expectations. The stock plummeted by 12.24 percent.

Lonmin plunged by 17.42 percent. The miner decided to close its Hossy and Newman shafts to reduce high cost production in an oversupplied market. The actions will lead to up to 6000 job cuts.

Mining stocks sank on the disappointing Chinese manufacturing data. Antofagasta dropped by 6.28 percent and Glencore plunged by 4.5 percent. BHP Billiton fell by 3.81 percent and Rio Tinto lost 3.52 percent.

Eurozone consumer confidence deteriorated for a fourth straight month in July and at a faster-than-expected pace, preliminary estimates from the European Commission showed Thursday. The flash consumer confidence index dropped to -7.1 from -5.6 in June. Economists had forecast a score of -5.8.

Despite uncertain developments in Greece, Eurozone economic growth slowed only slightly in July as private sector activity rose at one of the strongest pace seen over the last four years, flash survey data from Markit Economics showed Friday. The Purchasing Managers' Index fell to 53.7 in July from June's four-year high of 54.2. But, it remained slightly above the average seen over the first half of the year. The expected score was 54.

Germany's private sector expanded at a slower pace in July, flash survey data from Markit Economics showed Friday. The flash composite output index fell to 53.4 in July from 53.7 in June.

The French private sector growth slowed to a three-month low in July, flash survey data from Markit Economics showed Friday. The composite output index fell to 51.5 in July from June's 46-month high of 53.3.

British households perceive that the value of their home increased in July, a survey from Knight Frank and Markit Economics showed Friday. The house price sentiment index, or HPSI, dropped to 58.6 in July from 59.5 in the previous month.

U.K. mortgage approvals increased for the sixth straight month to a 15-month high in June and came in above economist expectations, data from the British Bankers' Association showed Friday.

The number of mortgage approvals rose to a seasonally adjusted 44,488 in June from 42,876 in April. It was forecast to rise to 43,300. The latest figure was the highest since March 2014, when approvals totaled 45,574.

New home sales in the U.S. unexpectedly showed a sharp pullback in the month of June, according to a report released by the Commerce Department on Friday, with sales falling to their lowest level in seven months.

The report said new home sales tumbled 6.8 percent to an annual rate of 482,000 in June from the downwardly revised May rate of 517,000. The steep drop came as a surprise to economists, who had expected new home sales to edge up to 550,000 from the 546,000 originally reported for the previous month.