European stock markets ended a two-day rally on Thursday as economic data pointed to weak consumer demand in the region's three biggest economies.

A YouGov/CEBR poll in the U.K. showed consumer confidence has slumped to its lowest level since May 2013, while in Germany retail sales rose less than expected in May. And in France, an index of consumer spending for that month dropped more than forecast. The European Union's first take on June inflation data is out later and analysts are looking for stagnant prices year-on-year after deflation of 0.1% in May. German statisticians said the country's June jobless rate was unchanged at 6.1%.

Meanwhile in Ottawa, Canada President Obama said Brexit raises "longer-term concerns about global growth" and could "freeze" U.K. and European investment.

The 27 European Union leaders met without British Prime Minister David Cameron yesterday and politicians including French Prime Minister Francois Hollande took the opportunity after the summit to remind restive citizens of the perils of leaving.

The FTSE 100 was down 0.76% at 6,311.57 after rising 3.58% yesterday, thereby erasing post-Brexit losses. In Frankfurt the Dax was down 0.64% at 9.550.43 and in Paris the Cac 40 lost 0.72% to 4,164.95.

Deutsche Bank DB and Santander  (SAN) - Get Report were both down more than 3% on news their U.S. units had failed Federal Reserve stress tests.

S&P 500 mini futures were down 0.10%.

The pound was recently up 0.20% against the dollar at $1.3456. Spot gold was recently down 0.26% at $1,315.76 an ounce and Brent crude pared earlier losses to trade down 0.99% at $50.11.

In China the CSI 300 closed up 0.08% at 3,153.92.

In Hong Kong the Hang Seng was rose 1.35% to 20,711.07.

In Tokyo the Nikkei 225 closed up 0.06% at 15,575.92. The benchmark index posted a monthly drop of 8.7%.

The Topix closed down 0.15% at 1,245.82.

Earlier in the day Japanese industrial output figures had come in below expectations, slumping 2.3% in May on the month, after rising 0.5% in April. Analysts had been looking for a 0.1% decline.