- Intensifying violence in Iraq
- US to lift 40-year export ban on oil products
- Oil stocks lead falls
- German consumer confidence slightly ahead of forecasts
FTSE 100: -0.79%
CAC 40: -1.28%
FTSE MIB: -0.80%
IBEX 35: -1.25%
Stoxx 600: -1.05%
European stocks ended the session near their worst levels, weighed down by reports of intensifying violence in Iraq and overnight losses on Wall Street.
Acting as a backdrop, the US may be preparing new sanctions against specific sector of Russia's economy, including energy technology.
To take note of, fixed income markets were apparently benefiting from haven flows, while market commentary was highlighting weakness in emerging market currencies.
Oil futures, however, continued to be lower on news that the US is set to lift a four decade ban on the export of oil products.
Intensifying violence in Iraq
Reports cited US intelligence as indicating that the Islamist radicals which just two weeks ago took over Mosul are now consolidating their hold over large swathes of the country.
In parallel, and in what amounted to a worrisome development, according to The Wall Street Journal Syrian air raids inside the country's borders have killed at least 50 people. Furthermore, militants are said to have attacked one of Iraq's largest air bases, located just 100 kilometres from Baghdad.
Brent crude futures fell by 0.846% to the $113.5/barrel mark on the ICE.
Oil stocks track Brent prices down
European regulators may be set to slap Philips, Samsung Electronics and Infineon with a fine over the alleged fixing of prices for the SIM cards which make cell phones work, according to two persons familiar with the matter cited by Reuters.
France will sell a 3.1% stake in gas giant GDF Suez to help fund the purchase of a stake in engineering group Alstom.
Spanish investment outfit Corporacion Financiera Alba offloaded a 3.7% stake in construction outfit ACS for €398m, reducing its holdings to 11.3% of the company's equity.
From a sector stand-point the largest losses are now being seen in the following industrial sectors within the DJ Stoxx 600: Oil&Gas (-1.66%), Media (-1.64%), Technology (-1.54%).
Confidence moves lower in France and Italy
GfK's consumer confidence index for Germany in the month of June remained unchanged at 8.6 points (consensus: 8.5).
ISTAT's headline Italian consumer confidence index slipped to 105.7 in June from a reading of 106.2 for the prior month.
Italian retail sales expanded at a 0.4% month-on-month clip in April (consensus: 0%).
INSEE's French business climate indicator dropped two points to 92 while consensus was expecting no change. That reading was the lowest since August of last year.
Crude futures move lower
The euro/dollar was up 0.24% at $1.3640.
Front month Brent crude futures are now off by 0.846% to the $113.5/barrel mark on the ICE.