European Markets Fall Amid Weak Euro Zone Data

European markets fell Friday as concerns about the global economic slowdown were revived after data from the euro zone was disappointing and 15 global banks were downgraded by Moody's Investor Service.

The German DAX 30 index fell 0.99 percent or 62.57 points to 6280.56. Shares of BASF SE declined 1.83 percent and shares of Metro AG fell 1.37 percent.

The French CAC 40 index fell 1.06 percent or 32.93 points to 3081.29. Shares of Peugeot SA declined 2.22 percent and shares of Capgemini SA fell 1.98 percent.

London's FTSE 100 index declined 0.90 percent or 49.85 points to 5516.51. Shares of Kazakhmys PLC fell 2.62 percent and shares of BG Group PLC declined 2.08 percent.

Spain's IBEX 35 fell 0.13 percent or 8.60 points to 6764.90. Shares of Tecnicas Reunidas SA declined 2.05 percent and shares of Mapfre SA fell 1.15 percent.

June's Markit Eurozone PMI Composite Output Index survey confirmed the picture of falling economic activity in the region as a whole. The flash estimate of the euro zone manufacturing PMI fell to a 3-year low of 44.8 in June from the final reading of 45.1 in May. Against this backdrop, the odds of a rate cut by the European Central Bank, perhaps in July, appear to be growing. But much bolder action will be needed to restore growth to the region.

Market sentiment turned negative as Moody's on Thursday downgraded five U.S. banks, nine European banks and the Royal Bank of Canada. It stated that these banks had significant exposure to the volatility and risk of outsized losses inherent in capital markets activities.

Investors are also keeping an eye the meeting on Friday in Rome among the leaders of Germany, France, Italy and Spain, which will focus on measures the euro zone can take regain economic growth momentum.