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LSE: Europe stocks fall on weak U.S. jobs data |
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By Blaise Robinson
PARIS, June 30 (Reuters) - European stocks turned negative
on Wednesday after data showed U.S. private employers added less
than a third of the jobs expected in June, weighing on sentiment
about the pace of the global economic recovery.
At 1325 GMT, the FTSEurofirst 300 index of top
European shares was down 0.6 percent at 990.17 points, while the
Euro STOXX 50, the euro zone's blue-chip index, was
down 0.2 percent at 2551.11.
The ADP Employer Services report -- seen as a harbinger for
all-important U.S. monthly non-farm payrolls data due on Friday
-- showed U.S. private employers added 13,000 jobs in June,
while the median of estimates from 30 economists surveyed by
Reuters was for a rise of 60,000 private-sector jobs in June.
'A lot of analysts have based their scenarios on a steady
economic recovery in the United States, so if the payrolls are
sluggish, it will have a strong impact on the market,' said
Philippe De Vandiere, analyst at IG Markets, in Paris.
Cyclical mining shares were among the most hit, with Rio
Tinto down 3.3 percent, Anglo American down 2.8
percent and Xstrata down 2.9 percent.
Banking stocks were mixed, after strongly rallying earlier
in the session following the results of the European Central
Bank's lending operation that soothed worries over funding in
the euro zone.
Deutsche Bank was up 1.1 percent and UniCredit was down 0.2 percent.
Results from the ECB funding operation showed banks borrowed
less than expected, easing concerns over their ability to cope
with the repayment of nearly half a trillion euros in 12-month
funds on Thursday.
The ECB said 171 banks borrowed 131.9 billion euros ($161.4
billion) over three months at a flat rate of 1 percent, below
expectations in a Reuters poll for demand of 210 billion euros.
The FTSEurofirst 300 is on track to record a loss of 8.2
percent on the quarter, its worst quarterly performance since
the first quarter of 2009, hammered by fears that sovereign debt
problems in the euro zone derail the economic recovery.
(Reporting by Blaise Robinson; editing by Simon Jessop)
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