EU STOCKS slide on U.S. debt nervousness

European stock markets traded broadly lower on Wednesday, tracking prior-day losses in the U.S. where discussions among lawmakers about raising the debt ceiling weighed on sentiment.

The U.S. Senate is set to hold a test vote today on legislation passed by the House of Representatives to cover federal spending through Dec. 15, and choke off funds for President Barack Obama’s health-care law. The debate may extend past a Sept. 30 deadline. The next fiscal year begins Oct. 1.

The Gfk Survey in Germany failed to support the market. The German Consumer Confidence gauged by the Gfk Survey improved to 7.1 for the month of October, exceeding both expectations and September’s print at 7.0. 

The Stoxx Europe 600 index dropped 0.4% to 311.90, erasing a 0.2% gain from Tuesday.

Among country-specific European indexes, Germany’s DAX 30 index dropped 0.5%, while France’s CAC 40 index lost 0.5% and the U.K.’s FTSE 100 index traded 0.5% lower.

Among notable movers in the index, shares of Carnival PLC   lost 5.9% after Morgan Stanley cut the cruise-line operator to underweight from equal-weight.

Shares of Nordea Bank AB  lost 2.3% after the Swedish government said it is selling its remaining 7% stake in the bank.

On a more upbeat note, shares of ThyssenKrupp AG  jumped 5.3% after European investor Cevian Capital said it has acquired a 5.2% stake in the German steelmaker. 

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