Data, S.Africa political turmoil weigh on stocks

European stock markets fell on Friday as investors digested economic data on the last day of the first quarter, while London faced pressure from South Africa's political turmoil.

Around midday in London, stocks were down by half a percent, with South Africa-exposed companies sliding after President Jacob Zuma sacked his respected finance minister.

Frankfurt and Paris stocks sagged on news of a sharp slowdown in eurozone inflation, which dampened the chances of a European Central Bank interest rate hike any time soon, dealers said.

European markets also slid as investors positioned themselves and closed their books on the final day of the quarter of 2017.

Traders shrugged off an overnight rally on Wall Street, which was buoyed by news that growth hit 2.1 percent in the last three months of 2016.

British investors also digested unrevised data, which showed the economy expanded by 0.7 percent in the final three months of last year despite jitters over Brexit.

In currency deals, South Africa's rand plunged after Zuma sacked finance minister Pravin Gordhan.

The news also sent shares in miner Anglo American down 3.7 percent, while finance group Old Mutual topped the fallers' board with a 6.4-percent tumble.

"Stocks with exposure to South Africa plunged amid deep fears about the state of the country's government following the sacking of respected finance minister Pravin Gordhan," said Neil Wilson, analyst with ETX Capital.

"Equities appear to be bearing the brunt of the market's concern today. Interestingly we've not seen massive moves in the rand.

"It's lower against the dollar for sure -- but the fall was not as much as we might have expected."

Miners were also hit by softer metal prices, with Antofagasta down 2.7 percent, BHP Billiton shedding 2.2 percent and Rio Tinto losing 2.4 percent.

Wall Street's rally earlier provided some much-needed support to markets after US President Donald Trump's failure last week to push through his healthcare bill.

That had stoked fears he would have trouble with his promised tax-cut and spending promises -- a key driver of a global rally since November.

But while Wall Street enjoyed advances, Asian investors were not so impressed in a mostly downbeat session.

- Rand fall -

The dollar surged five percent against the rand after the sacking of Gordhan, who had enjoyed the support of many international investors and had campaigned for budget discipline.

The rand languished at two-month dollar lows in late morning European deals.

Gordhan was also widely admired by ordinary South Africans and veterans of the anti-apartheid struggle and there are fears his removal -- along with several top cabinet members -- could precipitate a split in the ruling African National Congress, the party of Nelson Mandela.

The decision comes as the government struggles to get a grip on the once-booming economy of South Africa, one of the continent's biggest and part of the so-called BRICS grouping that includes China.

- Key figures at 1100 GMT -

London - FTSE 100: DOWN 0.5 percent at 7,332.60

Frankfurt - DAX 30: DOWN 0.1 percent at 12,248.36

Paris - CAC 40: DOWN 0.3 percent at 5,075.46

EURO STOXX 50: DOWN 0.3 percent at 3,472.43

Tokyo - Nikkei 225: DOWN 0.8 percent at 18,909.26 (close)

Hong Kong - Hang Seng: DOWN 0.8 percent at 24,111.59 (close)

Shanghai - Composite: UP 0.4 percent at 3,222.51 (close)

New York - Dow: UP 0.3 percent at 20,728.49 (close)

Euro/dollar: UP at $1.0694 from $1.0675

Pound/dollar: DOWN at $1.2450 from $1.2469

Dollar/yen: DOWN at 111.84 yen from 111.89 yen

Oil - West Texas Intermediate: DOWN 15 cents at $50.20 per barrel

Oil - Brent North Sea: DOWN 31 cents at $52.65

source: AFP