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European stocks dive further on ZEW

FXStreet (Mumbai) - The stocks on the European indices extend their early losses and dive deep in the red zone after the investors’ sentiment was further dampened by poor economic news from the UK and Germany.

The European equities opened lower tracking losses from their Asian counterpart, after tumbling Chinese imports data re-ignited China slowdown fears and spooked markets.

Weak fundamentals drag the stocks lower

After the weak China data, the UK deflation news and a sharp deterioration in the German economic sentiment, keeps the EU stocks pressured. In Germany, October's ZEW survey revealed a drop to 1.9 points from September's 12.1, while the market had expected 6.8 points. While, CPI figures for the UK showed a -0.1% level on a yearly basis for September, after no growth in August.

Upbeat corporate news in Germany, after SAP’s revenue rose 17%, also failed to lift the DAX. While the M&A deal chatter between brewing giant AB InBev and its rival SABMiller had little impact on the UK’s FTSE as the losses in the mining giant, Glencore (5.08%), drags the index lower.

Meanwhile, Germany’s DAX trades 1.25% lower at 9,990 points, while the UK’s FTSE loses 0.90% to 6,314. Among the other indices, the French CAC 40 index drops -1.70% to 4,608, while the pan-European Euro Stoxx 50 index sinks -1.44% to 3,200 points.

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