- IMF cuts global forecast
- German investor confidence falls
- German consumer confidence rises
- UK GDP grows in line with forecasts
- US durable goods orders increase
FTSE 100: -0.44%
CAC 40: -1.82%
FTSE MIB: -0.90%
Stoxx 600: -0.69%
Most European stocks were in the red after a report showed German investor confidence fell and the International Monetary Fund (IMF) cut its forecast for world growth.
A survey from the Ifo Institute showed German investor confidence fell more than expected in July. The business climate index dropped to 108 from 109.7 in June. Analysts had predicted a reading of 109.4.
Separately, GfK's forward-looking survey on German sentiment in August increased to its highest level since December 2006. The index climbed to 9.0 from 8.9 the prior month, surprising analysts who had expected an unchanged result.
The IMF lowered its global growth predictions, down from the 3.7% figure given in April to 3.4%, attributing the change to the crises in Ukraine and Iraq.
The European Union (EU) today reached a preliminary agreement on economic sanctions against Russia over the Ukraine turmoil. Diplomats said the details are still being worked out following discussions that lasted all day yesterday and part of today, Reuters reported.
"Clearly businesses are suffering as a result of the weakening trade ties with Russia, which has had sanctions imposed on it by Europe and the US due to its involvement in the crisis in eastern Ukraine," said Craig Erlam, Market Analyst at Alpari UK.
The death toll in Gaza has passed 800 following more than two weeks of clashes between Israelis and Palestinians.
Meanwhile, UK gross domestic product data for the second quarter grew by 0.8% quarter-on-quarter, the same as the prior three months, as expected by analysts.
In the US, a report revealed durable goods orders rose 0.7% in June following a 1% drop a month earlier. It beat analysts' estimates for a 0.5% increase.
British Sky Broadcasting Group (BSkyB) slid after it offered to buy Sky Deutschland and Sky Italia from Rupert Murdoch's 21st Century Fox. Sky Deutschland's shares
Royal Bank of Scotland Group advanced after saying first-half profit probably almost doubled.
Danone edged lower as the yoghurt maker said first half sales and profit fell short of projections.
Louis Vuitton declined after the luxury-goods company posted first half profit that missed estimates, saying demand weakened in Asia.
Air France-KLM Group gained after reporting second-quarter profit that beat market expectations.
The euro fell 0.23% to $1.3433.
Brent crude futures climbed 0.714% to $107.84 per barrel, according to the ICE.