By Sara Sjolin, MarketWatch
LONDON (MarketWatch) -- Europe's benchmark stock index was sent
back to levels not seen since May on Thursday, after disappointing
French and Italian industrial-production highlighted growth
concerns in the euro zone, while investors also waited for the
latest policy decision from the Bank of England.
The Stoxx Europe 600 index slid 0.9% to 337.03, setting it on
track for a fifth straight day in the red.
Leading losers in the pan-European index, shares of Fugro NV
tanked 20% after the oil-services company issued a profit warning
for the first half of the year.
Banco Espirito Santo SA tumbled 11%, adding to a 4.7% loss on
Wednesday, when reports that parent company Espirito Santo
International delayed coupon payments on its short-term debt sent
shivers through Portugal's financial sector. Portugal's PSI index
slumped 3.1% to 6,174.80.
BOE rate call
The U.K.'s FTSE 100 index fell 0.7% to 6,670.22 ahead of the
monthly BOE rate decision at noon in London, or 7 a.m. Eastern
Time. Analysts widely expect the central bank to keep the key
lending rate at a record low 0.5% and make no changes to its 375
billion-pound ($642 billion) asset-purchase program. The pound
(GBPUSD) traded at $1.7117 ahead of the decision, down from 1.715
late Wednesday.
Miners were among decliners after Chinese trade data for June
surprised to the downside. BHP Billiton PLC (BHP) fell 1%, and Rio
Tinto PLC (RIO) gave up 1.3%.
On a more upbeat note in London, Burberry Group PLC (BURBY)
advanced 1.8% after the luxury-goods retailer reported a 12%
increase in same-store sales in the first quarter.
Disappointing French data
Elsewhere, France's CAC 40 index lost 1% to 4,317.26, after May
industrial production data for the country dropped unexpectedly,
with manufacturing output sinking 2.3%.
Industrial output data out of Italy were also disappointing,
showing production declined 1.2% in May on the month, marking the
biggest slide since November 2012. The FTSE MIB index slumped 1.6%
to 20,529.91.
The data reports come after German data earlier this week came
in on the weak side, stirring concerns of a growth slowdown in
Europe.
Germany's DAX 30 index is so far down 3.2% on the week and
traded 1.2% lower at 9,694.11 on Thursday.
Among movers, BNP Paribas SA gave up 2.1% after the French bank
late Wednesday pleaded guilty in U.S. federal court to a criminal
charge over its dealings with sanctioned countries.
Shares of Telecom Italia SpA gained 1.3% after J.P. Morgan
Cazenove lifted the company to overweight from neutral, with the
analysts saying it remains exposed to consolidation upside in both
Italy and Brazil.
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