Europe open: Stocks slip after World Bank slashes growth forecasts

Sharply reduced global growth forecasts from the World Bank weighed on stocks at the start of the session.

As 08:59 BST the DJ Stoxx 600 was lower by 0.47% or 1.61 points to 344.65, the Dax by 0.48% or 49.09 points to 10,238.59 and the FTSE Mibtel by 0.59% or 105.68 points to 17,867.88.

Traders were also keeping an eye on the start, on Wednesday, of the European Central Bank´s programme of buying corporate debt.

The World Bank took an axe to its projections for global economic growth this year, highlighting the impact which low commodity prices were having on the economies of emerging market commodity exporters.

Sluggish growth in advanced economies, stubbornly low commodity prices, weak global trade, and diminishing capital flows meant the global economy would grow 2.4% in 2016 and not 2.9%, as the Washington-based lender had predicted in January.

"In an environment of anemic growth, the global economy faces mounting risks, including a further slowdown in major emerging markets," the World Bank cautioned in its latest Global Economic Prospects report.

On a more positive note, Chinese foreign trade data for May appeared to point to stable conditions in the domestic economy. Indeed, analysts at Capital Economics believed there were early signs of a pick-up in shipments to emerging markets - although not all observers were quite as sanguine.

China's global trade surplus widened to $49.98bn in May from April's $45.6bn, missing estimates of $55.70bn. Exports fell 4.1% year-on-year, compared to analysts’ forecast for a 4% drop and the previous month’s 1.8% slide. Imports dipped 0.4% in May but it was an improvement on April’s 10.9% plunge and better than expectations for a 6.8% decrease.

“With recent Chinese data also showing signs of weakness after a decent end to the first quarter, there is a worry that both the US and Chinese economies are hitting a soft patch in the second quarter at a time when central bank arsenals are starting to look a little depleted,” said Michael Hewson, chief market analyst at CMC Markets.

Front month West Texas Intermediate crude oil futures were edging higher by 0.04% to $51.45 per barrel on the NYMEX, despite data out overnight from the American Petroleum Institute revealing a 3.6m barrel drawdown in stocks.

In parallel, euro/dollar was edging up by 0.18% to 1.1367.

Shares in Ingenico Group skidded 6.8% lower after US rival VeriFone Systems lowered its full-year earnings and revenue forecasts overnight.

Stock in Erste Group Bank AG retreated 3.9% on news of a stake sale by one of its shareholders.