PARIS (dpa-AFX) - The European markets are trading weak on Wednesday, as escalation of violence in Iraq dampened investor sentiment, even as data showed that German consumer confidence is set to improve to the highest since 2006 in July.
Survey data from market research group GfK showed that the forward-looking consumer sentiment index rose to 8.9 in July from a revised 8.6 points in June. Economic expectations and willingness to spend strengthened after the European Central Bank lowered its key rate early this month.
The Euro Stoxx 50 index of eurozone bluechip stocks is falling 0.38 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, is losing 0.42 percent.
The German DAX is losing 0.35 percent and the French CAC 40 is dropping 0.62 percent. The UK's FTSE 100 and Switzerland's SMI are falling around 0.6 percent each.
In Frankfurt, HeidelbergCement is losing 2.5 percent. Lufthansa and Adidas are falling 2.2 percent and 1.3 percent, respectively.
Mineral extractor Aurubis is losing 1.4 percent. Merrill Lynch raised the stock to 'Neutral' from 'Underperform.'
JP Morgan raised Metro to 'Neutral' from 'Underweight.' The stock is gaining 2.5 percent.
Publishing firm Bastei Lubbe is climbing 5.4 percent. Berenberg initiated the stock with a 'Buy' rating.
In Paris, Vivendi is declining 4.8 percent. Credit Suisse re-initiated the stock with an 'Outperform' rating and a price target of 24 euros.
GDF Suez is losing 2.5 percent. The French government sold a 3.1 percent stake in the natural gas and electricity supplier for about 1.5 billion euros, to raise cash to buy a 20 percent stake in speed-train maker Alstom from Bouygues.
Alstom was raised to 'Buy' from 'Hold' at Deutsche Bank. The stock is gaining 1.3 percent.
In London, Bunzl is declining 3.4 percent after announcing two acquisitions.
Synectics expects results for the first half and fiscal 2014 to be significantly below market view. The stock plunged over 23 percent.
Northgate, which reported full year profit, climbed over 3 percent.
Engineering firm Aker Solutions is declining 6.8 percent after announcing a contract termination by Total SA.
The Asian stocks fell, as weak cues from Wall Street amid ongoing concerns over violence in crude producer Iraq kept investors on edge.
In the U.S., futures point to a cautious open on Wall Street. In the previous session, the stocks dropped as continued concerns about the violence in Iraq took the shine off solid economic data on new home sales and consumer confidence. The Dow slid 0.7 percent, the tech-heavy Nasdaq dropped 0.4 percent and the S&P 500 shed 0.6 percent.
Crude for August delivery is adding $0.42 to $106.45 per barrel, while gold is falling $7.9 to $1313.4 a troy ounce.
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