European stocks fall on disappointing U.S. economic data

Frankfurt (MarketWatch) - European stocks fell on Thursday as a string of data rekindled worries about the U.S. economy, outweighing the strong results from U.S. banking giant JP Morgan Chase & Co. and a successful tender Spanish bonds.

In Europe, Stoxx 600 Index (STOXX: ST: SXXP) fell 1.3 percent to 252.55. The index moved in and out of positive territory several times during the session.

"Capital markets are unsure which way to jump right now," said Peter Dixon, strategist at Commerzbank AG in London. "Volatility is a key story."

Several U.S. economic reports released Thursday soured sentiment. Manufacturing activity grew at a slower pace in July than in June, in New York and Philadelphia regions, the data show.
Wall Street stocks posted losses as a result of the data, with Dow Jones Industrial Average (DOW: DJIA) down 103 points in trading.

The main European indices tracked Wall Street lower. The German Xetra DAX Index (XETRA: DX: DAX) fell by 1 percent 6,150.44 and France's CAC-40 index (Euronext: FR: PX1) decreased 1.3 percent to 3,586.93.