PARIS (dpa-AFX) - The French market is 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 0.44 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, is losing 0.51 percent.
The CAC 40 index is currently falling 0.64 percent.
Vivendi is declining 4.8 percent. Credit Suisse reinitiated 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.
Other major markets in the region are also languishing in negative territory.
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 $0.51 to $106.54 per barrel, while gold is falling $8.6 to $1312.7 a troy ounce.
Copyright RTT News/dpa-AFX