Dipo Olowookere
By Investors Hub
European stocks have drifted lower on Friday, with financial, mining and energy stocks coming under selling pressure as investors fretted about trade fiction, rising interest rates and political risks.
Amid lack of any positive triggers, investors looked ahead to the Group of Seven summit as well as next week’s ECB and Fed meetings for direction. The high-profile U.S.-North Korea summit was also on investors’ radar.
While the German DAX Index has fallen by 0.4 percent, the U.K.?s FTSE 100 Index and the French CAC 40 Index are both down by 0.1 percent.
Deutsche Bank shares have dropped. A report from Bloomberg said the German bank’s Chairman Paul Achleitner has spoken with top shareholders about merging with Commerzbank as Germany’s largest lender struggles with its turnaround plan.
Standard Life Aberdeen has also slumped after Lloyds Banking sold its remaining stake in the asset manager. Air France KLM has also fallen after unveiling passenger traffic figures for May.
In economic news, German industrial production unexpectedly decreased in April, data from Destatis revealed. Industrial output dropped 1 percent month-on-month in April, reversing a revised 1.7 percent increase in March. Output was forecast to grow 0.3 percent.
Another report showed that Germany’s exports dropped in April, while imports expanded after falling for three straight months.
French industrial production declined for the second straight month in April on weak mining activity, the statistical office Insee showed.
Industrial output unexpectedly dropped by 0.5 percent month-on-month in April, following March’s 0.4 percent decrease. Output was forecast to grow 0.3 percent.
