By Sara Sjolin, MarketWatch
LONDON (MarketWatch) -- Europe's benchmark stock index dropped
for a fifth day on Thursday, after Chinese exports and French
industrial-production data missed expectations, and investors
waited for the latest policy decision from the Bank of England.
The Stoxx Europe 600 index lost 0.4% to 338.59, after closing at
the lowest level since May on Wednesday.
Leading losers in the pan-European index, shares of Fugro NV
tanked 19% after the oil-services company issued a profit warning
for the first half of the year.
Banco Espirito Santo SA tumbled 11%, adding to a 4.7% loss on
Wednesday, when reports that parent company Espirito Santo
International delayed coupon payments on its short-term debt sent
shivers through Portugal's financial sector.
BOE rate call
The U.K.'s FTSE 100 index fell 0.1% to 6,708.25 ahead of the
monthly BOE rate decision at noon in London, or 7 a.m. Eastern
Time. Analysts widely expect the central bank to keep the key
lending rate at a record low 0.5% and make no changes to its 375
billion-pound ($642 billion) asset-purchase program.
Miners were among decliners after Chinese trade data for June
surprised to the downside. BHP Billiton PLC (BHP) fell 0.3%, and
Rio Tinto PLC (RIO) gave up 0.4%.
On a more upbeat note in London, Burberry Group PLC (BURBY)
advanced 2% after the luxury-goods retailer reported a 12% increase
in same-store sales in the first quarter.
Barratt Developments PLC climbed 1.4% as the house builder
lifted its guidance for fiscal 2014 after selling the highest
number of houses in six years.
Shares of Associated British Foods PLC put on 1.1%. The company
said its retail brand Primark is expected to help offset the
weakness from lower sugar prices and a stronger pound (GBPUSD).
Disappointing French data
Elsewhere, France's CAC 40 index lost 0.6% to 4,334.62, after
May industrial production data for the country dropped
unexpectedly, with manufacturing output sinking 2.3%.
Industrial output data out of Italy were also disappointing,
showing production declined 1.2% in May on the month, marking the
biggest slide since November 2012. The FTSE MIB index slumped 1.4%
to 20,589.34.
The data reports come after German data earlier this week came
in on the weak side, stirring concerns of a growth slowdown in
Europe.
Germany's DAX 30 index is so far down 2.6% on the week and
traded 0.6% lower at 9,753.87 on Thursday.
Among movers, BNP Paribas SA gave up 2% after the French bank
late Wednesday pleaded guilty in U.S. federal court to a criminal
charge over its dealings with sanctioned countries.
Shares of Telecom Italia SpA gained 1.9% after J.P. Morgan
Cazenove lifted the company to overweight from neutral, with the
analysts saying it remains exposed to consolidation upside in both
Italy and Brazil.
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