European Stocks Fall As China Volatility Dents Sentiment

(RTTNews) - European stocks fell on Wednesday, with growing anxiety over China's economy, a slump in commodity prices and uncertainty over the Federal Reserve's policy outlook weighing on investor sentiment.

Meanwhile, German lawmakers backed a third bailout package for Greece despite misgivings among some conservative lawmakers. Addressing the Bundestag ahead of the crucial vote, Germany's hardline finance minister Wolfgang Schaeuble stressed it would be irresponsible not to give the indebted nation another bailout package.

The euro strengthened against the dollar after data from the European Central Bank showed the euro area current account surplus increased for the first time in five months. The current account surplus rose to a 3-month high of 25.4 billion euros in June from 19.1 billion euros in May. On an unadjusted basis, the current account surplus surged to 31.1 billion euros from 4.3 billion euros in May.

Separately, figures from Eurostat showed that Eurozone Construction output fell a seasonally adjusted 1.9 percent month-over-month in June, in contrast to a 0.2 percent increase in May.

The Stoxx Europe 600 index is currently down about 0.7 percent, while the German DAX is losing 1 percent, France's CAC 40 index is moving down 0.6 percent and the U.K.'s FTSE 100 is declining 0.9 percent.

Resource stocks are bearing the brunt of the selling amid heightened fears of slowing demand in China. Anglo American shares are down over 3 percent while Rio Tinto is losing 2 percent.

Glencore is plunging 8 percent after the Anglo-Swiss commodities trader and miner cut its capex target for the full year.

Carlsberg is plunging almost 10 percent in Copenhagen after the Danish brewer cut its full-year earnings forecast, citing a deteriorating macroeconomic climate in Eastern Europe.

Admiral shares are up more than 5 percent after the car insurance group reported a forecast-beating 1 percent rise in first-half pre-tax profits.

Shares of Manz AG are up more than 2 percent in Frankfurt. The engineering company said that it has received several follow-up orders worth about 10 million euros for the automated assembly of notebooks and other consumer electronic devices.

Elsewhere, the Asian markets turned in a mixed performance as Chinese stocks seesawed before closing sharply higher following another round of cash injection by People's Bank of China.

Japanese shares bore the brunt of the selling as official data showed the country's export growth slowed in July on the back of faltering demand in China and other key markets.

U.S. stock futures point to a slightly lower open as investors await the Fed minutes and U.S. inflation figures for fresh clues on whether the Federal Reserve will likely make its first interest-rate hike in nearly a decade next month.