A man looks at an electronic board at a brokerage house in Haikou, Hainan province, yesterday. Chinese stocks fell, led down by oil refiner Sinopec and property firms, in response to a rebound of global oil prices and the prospect of a Chinese economic slowdown in the second half of this year. (REUTERS)

london • European stocks closed generally weaker yesterday on US and eurozone data that dented market sentiment and in response to mixed corporate results. In London the FTSE 100 index shed 0.16 percent to finish at 5,411.90 while in Paris the CAC 40 fell 0.19 percent to reach 4,392.36. The Frankfurt Dax defied the trend and gained 0.30 percent to close at 6,479.56. The Euro Stoxx 50 index of leading eurozone companies edged up 0.01 percent to 3,367.82.

US stocks traded mixed yesterday as the market weighed a disappointing growth report on the US economy and falling oil prices that boosted hopes of easing inflation. The Dow Jones Industrial Average in mid-afternoon trade was down 1.01 percent at 11,466.61 while the tech-heavy Nasdaq composite had gained 0.67 percent to reach 2,345.33.

The Commerce Department reported the world’s largest economy grew an annualized 1.9 percent in the second quarter, picking up steam from a downwardly revised 0.9 percent first quarter for gross domestic product (GDP). But the second-quarter expansion missed market expectations of 2.3 percent growth.

“The second-quarter headlines, coupled with the downward revision of fourth quarter GDP to a negative 0.2 percent, and the downward revision to first quarter GDP to 0.9 percent, are being viewed understandably in a negative light by the market,” analysts at Briefing.com wrote in a client note.

A surprising jump in weekly unemployment figures also rattled investors. The Labour Department reported unemployment benefits claims rose by 44,000 in the week ended July 26, to 448,000. Most analysts expected claims to fall by 9,000. The data report comes ahead of today’s July payrolls picture. Most analysts expect a loss of 75,000 jobs and the US unemployment rate to tick up to 5.6 percent.

European investors were likewise unsettled by news that annual inflation in the eurozone had reached a record high 4.1 percent in July. In London supermarkets came under particular pressure. Sainsbury fell 2.25 percent to 315.50 pence while Tesco lost 3.46 percent to close at 360.40 pence.

Oil companies were generally stronger on a positive earnings report from Royal Dutch Shell. Cairns rose 3.98 percent to 2,740 pence, but Shell itself fell 1.27 percent to 1,782 pence after announcing record capital investment this year of 36bn euros.

In Paris pharmaceutical group Sanofi-Aventis lost 4.71 percent to close at 45.07 euros after releasing what one analyst described as mediocre quarterly results. France Telecom by contrast beat market expectations for its first half results and rose 2.98 percent to 20.37 euros. Mining group Eremet suffered a bout of profit-taking and fell 2.96 percent to 447.49 euros after disclosing a sharp hike in first half net earnings.

In Frankfurt world logistics leader Deutsche Post shed 2.90 percent to finish at 15.09 euros after reporting a decline in second quarter net earnings. Deutsche Bank moved in the opposite direction, gaining 1.29 percent to reach 59.59 euros after reporting weaker quarterly earnings that nonetheless eclipsed market expectations.

Elsewhere there were gains of 0.54 percent to 11,881.3 on the Ibex-35 in Madrid and 0.45 percent to 7,141.21 on the Swiss Market Index. There were declines of 0.30 percent to 28,331 on the SP/Mib in Milan, 1.10 percent to 399.95 on the AEX in Amsterdam and 1.18 percent to 2,994.38 on the Bel-20 in Brussels.

Asian shares closed mostly up after a Wall Street rally the previous day and despite a sharp rise in oil prices, with investors digesting a flurry of corporate earnings statements.