European stocks fall on weaker German confidence

Europe’s stock markets dropped on Friday as a fall in German business confidence offset positive British growth data, while traders reacted to a huge tie-up of the continent’s pay-TV sector. In Paris, the CAC 40 shed 1.82 per cent to 4,330.55 points after poor company results following three consecutive days of gain. Frankfurt’s DAX 30 index lost 1.53 per cent to 9,644.01 compared with Thursday’s close. London’s benchmark FTSE 100 index dipped 0.44 per cent to stand at 6,791.55 points at the closing bell, with investors shrugging off the British output data that were in line with analysts' expectations. The dip in the markets coincided with a rise in bond prices, with investors spooked over relatively low German confidence data. Wall Street opened on a weak note off the back of poor company results, in turn dragging European stocks down.
- 'Significant hope' -
Britain's economy grew in the 2nd quarter, overtaking the levels it achieved before the global financial crisis, official data showed on Friday. Gross domestic product expanded by 0.8 per cent between April and June from the first quarter, when it grew by the same amount, the Office for National Statistics said in a statement. The economy is now 0.2 per cent bigger than before its pre-crisis peak in early 2008, the ONS added. The International Monetary Fund meanwhile predicts that Britain will be the fastest-growing major world economy this year. Analysts said the UK's recovery offered "significant hope" to nations in the eurozone but also voiced doubts the single-currency bloc would be able to follow Britain's lead. ‘We doubt that the eurozone will stage a recovery to match the UK's until private and public debts have been reduced and the ECB has brought in large quantities of assets,’ said Jennifer McKeown, senior economist at Capital Economics, according to AFP.