European stocks turn mostly lower, despite German data; Dax down 0.74%

European stocks turned mostly lower on Friday, despite positive economic reports out of Germany, as investors remained cautious amid growing speculation over a possible near-term end to the U.S. Federal Reserve's bond-buying program. 

During European afternoon trade, the EURO STOXX 50 fell 0.25%, France’s CAC 40 inched 0.05% higher, while Germany’s DAX 30 slumped 0.74%. 

The Ifo Institute said its German business climate index rose to 105.7 in May, from a reading of 104.4 the previous month, beating expectations for an increase to 104.5. 

The report came after data showed that the Gfk German consumer climate index rose unexpectedly in May, ticking up to 6.5 from a reading of 6.2 the previous month. Analysts had expected the index to remain unchanged this month. 

But investors remained cautious after Federal Reserve Chairman Ben Bernanke said on Wednesday that the bank could begin tapering its bond-buying program.

Financial stocks remained broadly lower, as French lenders Societe Generale and BNP Paribas shed 0.39% and 1.56%, while Germany's Deutsche Bank plummeted 2.31%. 

Among peripheral lenders, Spanish banks BBVA and Banco Santander declined 0.56% and 0.37% respectively, while Italy's Intesa Sanpaolo an Unicredit continued to overperform, gaining 0.86% and 0.24%. 

Elsewhere, Novo Nordisk trimmed earlier gains, still up 0.15% after the Danish drugmaker said tests with its liraglutide treatment showed an 8% weight-loss for overweight patients without diabetes, compared with a 2.6% weight loss for a placebo. 

In London, FTSE 100 retreated 0.62%, as U.K. lenders tracked their European counterparts lower, while data showed that mortgage approvals in the U.K. rose less-than-expected in April. 

Barclays erased earlier gains, dropping 0.79%, and Lloyds Banking shed 0.96%, while HSBC Holdings and the Royal Bank of Scotland tumbled 1.76% and 1.88% respectively. 

Mining giants Rio Tinto and BHP Billiton also remained on the downside, sliding 0.96% and 1.29%, while Anglo American dropped 0.54%. 

In the U.S., equity markets pointed to a lower open. The Dow Jones Industrial Average futures pointed to a 0.26% fall, S&P 500 futures signaled a 0.40% decline, while the Nasdaq 100 futures indicated a 0.44% drop. 

Later in the day, the U.S. was to release government data on durable goods orders.