By Sara Sjolin, MarketWatch
LONDON (MarketWatch) -- Disappointing U.S. jobs and housing data
hit European stock markets in afternoon action on Thursday, as
investors worried the world's largest economy isn't recovering at
the expected pace.
The Stoxx Europe 600 index slipped 0.2% to 307.53.
The index had spent six of the past seven trading days in
positive territory, boosted by strong signals from central banks
that they will ease monetary policy in times of sluggish growth.
Europe's benchmark stock index rose Wednesday to the highest
closing level since June 2008, after weak euro-zone growth data
fueled expectations the European Central Bank will consider more
stimulus to kick-start the economy.
Among notable movers in Europe, shares of Compagnie Financiere
Richemont SA rallied 7.5%, after the luxury-goods firm posted
full-year earnings ahead of expectations and said it made a good
start to the year. Additionally, the company said Chairman Johann
Rupert will take a 12-month sabbatical.
On a more downbeat note, shares of Zurich Insurance Group AG
lost 3.1%, after the company reported a 7% decline in first-quarter
profit, citing a "challenging economic environment."
The broader European stock markets were weighed by downbeat data
from the U.S., as hopes that a strong American economy could boost
global growth were set back.
Initial jobless claims jumped by 32,000 to 360,000 last week,
marking the highest level in a month and a half. Meanwhile, U.S.
housing starts dropped 16.5% in April to a seasonally adjusted
annual rate of 853,000, the lowest level since November.
U.S. stocks opened lower on Wall Street, after a record finish
for the Dow Jones Industrial Average (DJI) and the S&P 500
index (SPX) on Wednesday.
Data out of Asia were also on investors' minds in Europe, after
Japan posted a 0.9% rise in first-quarter gross domestic product,
topping expectations of a 0.7% improvement quarter-on-quarter. The
faster rate of expansion was driven by higher household consumption
and exports, according to the government data.
Asia markets, however, were mixed, with Japanese stocks showing
weakness.
Back in Europe, trade data for the euro zone showed exports rose
2.8% in March compared with February, while imports fell 1%.
Additionally, inflation for the region dropped to 1.2% in April
from 1.7% in March, with fuel and telecoms having the biggest
downward impacts.
Among notable movers, banks showed weakness. Shares of HSBC
Holdings PLC (HBC) slipped 0.7%, after Deutsche Bank cut the
banking giant to hold from buy.
Commerzbank AG dropped 3.6% in Frankfurt, partly erasing a 12%
jump from Wednesday, when the bank rallied after Germany's bank
rescue fund said it sold about 625 million euros ($805 million) of
Commerzbank shares to reduce its stake in the bank.
Among country-specific indexes, the U.K.'s FTSE 100 index
slipped 0.1% to 6,689.16, on track to break a 10-day winning
streak.
Shares of Aviva jumped 7.9%, after the insurance firm posted an
18% rise in the value of new business in the first quarter, helped
by a strong market in the U.K., France, Turkey and Asia.
Vodafone Group PLC rose 0.9%, after the telecom major said its
German unit has signed a network-access agreement with Deutsche
Telekom AG , allowing Vodafone to offer high-speed fixed-line
broadband and internet-based TV across Germany.
Germany's DAX 30 index slipped 0.1% to 8,353.11, falling after
reaching an all-time high the prior day.
France's CAC 40 index lost 0.4% to 3,966.29.
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