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. 

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U.S. futures lower, durable goods orders in focus; Dow Jones down 0.24%

U.S. stock futures pointed to a lower open on Friday, ahead of the release of U.S. economic data later in the day, while expectations for a near-term end to the Federal Reserve's bond-buying program continued to weigh. 

Ahead of the open, the Dow Jones Industrial Average futures pointed to a 0.24% fall, S&P 500 futures signaled a 0.37% decline, while the Nasdaq 100 futures indicated a 0.38% loss.

Investors remained cautious after Fed Chairman Ben Bernanke said on Wednesday that the bank could begin tapering its bond-buying program.

In testimony to the U.S. Joint Economic Committee, Fed Chairman Bernanke said a decision to scale back the Fed’s asset purchase program could be taken in the "next few meetings" if economic data continued to improve. 

Tech stocks were likely to remain in focus, after Hewlett-Packard soared over 17% on Thursday, a day after the world's largest PC maker raised its 2013 earnings outlook following quarterly results that beat expectations. Shares slid 0.44% in pre-market trade. 

Among Internet-related companies, Google fell 0.26% in early trading, amid reports the maker of the Android operating system is considering buying map-software provider Waze Inc, possibly leading to a bidding war with Facebook. 

In company news, consumer products maker Procter & Gamble was said to be replacing Chief Executive Officer Bob McDonald with his predecessor, A.G. Lafley. Shares were up 1.21% pre-market. 

Other stocks in focus included Abercrombie & Fitch and Footlocker, scheduled to report first-quarter earnings later in the day. 

Across the Atlantic, European stock markets were mixed to lower. The EURO STOXX 50 fell 0.18%, France’s CAC 40 eased up 0.06%, Germany's DAX slid 0.59%, while Britain's FTSE 100 declined 0.59%. 

During the Asian trading session, Hong Kong's Hang Seng Index slipped 0.23%, while Japan’s Nikkei 225 Index climbed 0.58%. 

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

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Dollar mixed vs. rivals ahead of U.S. data

The U.S. dollar was mixed against the other major currencies on Friday, as markets eyed the release of U.S. data later in the day, while expectations for a near-term end to the Federal Reserve's bond buying program still lent some support to the greenback. 

During European morning trade, the dollar was lower against the euro, with EUR/USD rising 0.29% to 1.2971. 

The euro gained ground after 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. 

The greenback was steady against the pound, with GBP/USD eased up 0.05% to 1.5113. 

In a report, the British Bankers' Association said mortgage approvals rose by 32,200 in April, less than the expected 32,700 increase, after a 31,400 rise the previous month. 

Elsewhere, the greenback was lower against the yen and the Swiss franc, with USD/JPY edging down 0.25% to trade at 101.73, and withUSD/CHF retreating 0.40% to 0.9651. 

Bank of Japan Chairman Haruhiko Kuroda earlier said that he’ll keep strengthening communication with the market and that the unprecedented stimulus announced by the central bank remains sufficient. 

The greenback was higher against its Canadian, Australian and New Zealand counterparts, with USD/CAD gaining 0.39% to 1.0342,AUD/USD shedding 0.77% to 0.9672 and NZD/USD dropping 0.57% to 0.8087. 

Earlier Friday, official data showed that New Zealand's trade surplus narrowed far more-than-expected in April, falling to NZD157 million, from a surplus of NZD718 million the previous month. 

Analysts had expected the trade surplus to narrow to NZD475 million last month. 

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.23% to 83.60. 

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

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