Investing.com - European shares continued trading lower Tuesday, as equities sold off on global growth concerns sparked by Friday’s U.S. broadly lower employment report and Spanish worries.
At the close European trade, the EURO STOXX 50 fell 2.97%, France's CAC 40 plunged 3.08%, while Germany’s DAX traded lower by 2.49%. Meanwhile, in the U.K. the FTSE 100 added 2.24%.
The risk off sentiment started as high Spanish borrowing costs mounted. The yield on Spain’s 10-year government bonds moved up to 5.9% from 5.8% earlier in the day sparking fears that the country will be the next in the euro zone to require a bailout.
The increase in borrowing costs came despite reassurances from Spanish Prime Minister Mariano Rajoy earlier that the country will cut its budget deficit to 3% of gross domestic product in 2013.
Sentiment on the euro was also hit after a report showed that investor sentiment in the euro zone dropped this month, after three successive monthly increases.
Market research group, Sentix said its index of investor confidence declined by 6.5 points to minus 14.7 in April from March’s reading of minus 8.2.
Analysts had expected the index to improve modestly by 0.1 points to minus 8.1 in April.
Adding to the global economic slowdown worries, the outlook for the U.S. recovery remained uncertain after government data on Friday showed that the economy added just 120,000 jobs in March, the lowest number since December and well below expectations for a 203,000 increase.
SBM Offshore plunged 12% after the oil and gas platform supplier hired forensic accountants to investigate improper sales tactic.
Marine Harvest gave back 7.5% as the salmon farmer suffered from concern that salmon supply will outgrow demand.
U.S. stocks are trading sharply lower with the Dow off 1.34%, the S&P 500 down 1.26% and the Nasdaq plunging 1.53%.
Traders are anticipating the U.S. Federal budget balance and Beige Book reports, as well as Australian unemployment numbers and German 10 year bond auction on Wednesday.
At the close European trade, the EURO STOXX 50 fell 2.97%, France's CAC 40 plunged 3.08%, while Germany’s DAX traded lower by 2.49%. Meanwhile, in the U.K. the FTSE 100 added 2.24%.
The risk off sentiment started as high Spanish borrowing costs mounted. The yield on Spain’s 10-year government bonds moved up to 5.9% from 5.8% earlier in the day sparking fears that the country will be the next in the euro zone to require a bailout.
The increase in borrowing costs came despite reassurances from Spanish Prime Minister Mariano Rajoy earlier that the country will cut its budget deficit to 3% of gross domestic product in 2013.
Sentiment on the euro was also hit after a report showed that investor sentiment in the euro zone dropped this month, after three successive monthly increases.
Market research group, Sentix said its index of investor confidence declined by 6.5 points to minus 14.7 in April from March’s reading of minus 8.2.
Analysts had expected the index to improve modestly by 0.1 points to minus 8.1 in April.
Adding to the global economic slowdown worries, the outlook for the U.S. recovery remained uncertain after government data on Friday showed that the economy added just 120,000 jobs in March, the lowest number since December and well below expectations for a 203,000 increase.
SBM Offshore plunged 12% after the oil and gas platform supplier hired forensic accountants to investigate improper sales tactic.
Marine Harvest gave back 7.5% as the salmon farmer suffered from concern that salmon supply will outgrow demand.
U.S. stocks are trading sharply lower with the Dow off 1.34%, the S&P 500 down 1.26% and the Nasdaq plunging 1.53%.
Traders are anticipating the U.S. Federal budget balance and Beige Book reports, as well as Australian unemployment numbers and German 10 year bond auction on Wednesday.