EU shares hit by lacklustre data

Stocks in Europe edged higher in early trading on Tuesday but came under pressure later in the day after unemployment data disappointed markets.

The eurozone’s jobless rate declined to 11.3 per cent in February and, despite it hitting a near three-year low, sent shares lower as it failed to match expectations.

Germany’s DAX index fell over 0.6 per cent, France’s CAC 40 declined more than 0.2 per cent and the Euro Stoxx 50 lost around 0.3 per cent.

The single currency also came under pressure and looked likely to post its worst quarterly performance on record. Since the beginning of the year, the euro has declined over ten per cent when compared with the greenback. A combination of the European Central Bank’s quantitative easing scheme and Greece’s prolonged debt woes have added to the euro’s strife.

Mounting uncertainty over the ability of Greece to finance its debt is weighing on markets, as the heavily indebted nation stands a chance of running out of money this month unless it receives a fresh injection of capital from its European creditors.

Greece needs a reform package to be approved before further funds will be released, however, the latest developments show that it failed to agree a package of economic reforms with its lenders on Monday. Talks will begin again next week in an effort to end the deadlock that is impacting the euro and the European economy.

Elsewhere, the price of crude oil fell further on Tuesday and extended two days of declines on the prospect of increased oil exports from Iran.

The energy-rich country entered a final day of talks with six of the world’s leading nations over a nuclear deal that could see further crude supplied from Iran to a market that is suffering from a global supply glut.

Brent crude neared $55 per barrel and WTI traded close to $47 per barrel.