- World Bank cuts global growth forecast
- UK jobless rate falls
- ECB's Mersch outlines possible ABS plans
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European markets reacted negatively to news the World Bank has cut its global growth forecast.
The World Bank downgraded its 2014 outlook to 2.8% from 3.2%, citing weaker than expected expansion in the US, the crisis in Ukraine and a slower growth outlook for China.
In the UK, a report showed employers added 345,000 jobs in the three months to April, compared to 283,000 the previous quarter. Analysts had expected 270,000 jobs.
The unemployment rate fell to 6.6% in the three-month period from 6.8% previously, better than the 6.7% that was forecast by analysts. It marked the lowest point in five years.
Jobless claims dropped 27,400 in May following a fall of 28,400 a month earlier. Economists had pencilled in a 25,000 decline.
However, average weekly earnings rose by 0.7% in in the three months to April, missing the 1.2% estimate and less than the 1.7% the prior period.
"With consumer price inflation last reported at 1.8%, inflation is rising at more than twice the rate of wage," said CMC Markets UK Analyst Jasper Lawler.
"The Bank of England will be concerned that even though unemployment is falling, if real wage growth is slowing in the UK, the only way to keep up the same growth in spending is by using credit, and that becomes a problem when interest rates rise."
ECB may buy "simple and transparent" ABS, says Mersch
European Central Bank (ECB) official Yves Mersch said the monetary authority is working towards a more holistic approach to the regulatory treatment of ABS in Europe.
"There is a growing consensus that an instrument once seen as part of the problem could in fact be part of the solution," he said of talks about ABS in a speech entitled 'Next steps for European securitisation markets'.
Airbus dropped after saying that Emirates pulled out of its planned purchase of 50 A350-900 planes and 20 of the larger -1000 variant.
Rolls-Royce Holdings declined after revealing that the Emirates' cancellation reduces its order book by about £2.6bn.
Lufthansa slumped after lowering its forecast for operating profit this year and next, citing the effect of strikes and the devaluation of the Venezuelan bolivar for the reduction.
Vallourec retreated as the French producer of steel pipes for the oil and gas industry said 2014 earnings before interest, taxes, depreciation and amortisation will be about 10% lower than the previous year due to a fall in orders from Petroleo Brasileiro.
H&M advanced after the European retailer said revenue in May jumped 19% from a year earlier, exceeding analysts' estimates.
Inditex gained as the world's largest apparel retailer posted first-quarter net income that beat analysts' estimates.
Nutreco edged lower after saying it has halted a process to sell its Iberian compound feed and meat assets.
Genel Energy, which owns oil and gas assets in Iraq's Kurdistan region, plunged on news militants from a breakaway al-Qaeda group captured the city of Mosul.
The euro fell 0.13% to $1.3530.
Brent crude futures rose $0.337 to $109.890 per barrel, according to the ICE.