European stocks decline in cautious trade; Dax down 0.50%

 - European stocks declined on Thursday, as investors remained cautious amid lower expectations for further easing measures by the European Central Bank. 

During European morning trade, the EURO STOXX 50 slid 0.32%, France’s CAC 40 fell 0.18%, while Germany’s DAX 30 dropped 0.50%. 

European equities remained under pressure as expectations for further monetary easing by the ECB dimmed after the bank left monetary policy unchanged at its meeting this month, following a surprise rate cut in November. 

Elsewhere, news that U.S. Congressional leaders reached an agreement on a two year budget deal was seen as increasing the likelihood that the Federal Reserve would begin to scale back its USD85 billion a month asset purchase program at next week’s policy meeting. 

Financial stocks were mostly lower, as BNP Paribas rose 0.19% and Societe Generale slipped 0.11% in France, while Germany's Deutsche Bank dropped 0.51%. 

Among peripheral lenders, Spanish banks BBVA and Banco Santander declined 0.16% and 0.41% respectively, while Italy's Unicredit and Intesa Sanpaolo retreated 0.43% and 0.57%. 

French car maker Peugeot plummeted 5.22% after saying it is studying the potential for a capital increase and partnerships. 

On the upside, Fortum Oyj surged 5.52% after the electricity provider said it will sell its Finnish power-distribution business for EUR2.55 billion. 

In London, FTSE 100 shed 0.48%, weighed by losses in the financial sector. 

Shares in Barclays slipped 0.17% and Lloyds Banking retreated 0.48%, while the Royal Bank of Scotland tumbled 1.33%. HSBC Holdings overperformed however, up 0.30%. 

Meanwhile, mining stocks were mixed as Rio Tinto rose 0.31% and Glencore Xstrata added 0.27%, while Vedanta Resources and Randgold Resources lost 0.92% and 2.21% respectively. 

In the U.S., equity markets pointed to a steady open. The Dow Jones Industrial Average futures pointed to a 0.03% slip, S&P 500 futures signaled a 0.01% dip, while the Nasdaq 100 futures indicated a 0.02% gain. 

Later in the day, the ECB was to publish its monthly bulletin, while the euro zone was to release data on industrial production. 

The U.S. was to produce data on retail sales, as well as the weekly report on initial jobless claims
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