BLBG: Europe Stocks Fall From Three-Week High Amid Manufacturing Data
European stocks fell for the first time in four days amid mixed reports on the region’s factory output.
The Stoxx Europe 600 Index declined 0.2 percent to 45.58 at 11:23 a.m. in London, paring a drop of 0.4 percent. A composite index showed manufacturing and services in the euro area expanded less than forecast in May. Germany’s output missed projections, while France’s contracted less than estimated.
“The fundamentals are certainly a bit more sluggish than what they were at the beginning of the year,” said Ralf Zimmermann, an equity strategist at Bankhaus Lampe KG in Dusseldorf, Germany. “It’s a wake up call showing us that we are still at sub-par growth. For stocks this is a cap to the upside.”
The Stoxx 600 rallied 2.5 percent in the past three days to its highest level since April as the European Central Bank said it plans to boost bond purchases in May and June. The ECB publishes an official account of its latest policy meeting at 1:30 p.m. Frankfurt time.
Lenders were the biggest drag on the Stoxx 600. Raiffeisen Bank International AG slid 2.1 percent after reporting first-quarter profit that nearly halved. Banca Monte dei Paschi di Siena SpA declined 3.2 percent after saying investors can exercise rights to buy new shares for about three weeks starting May 25.
Transocean Claims
Miners and energy producers rose the most among industry groups. Fresnillo Plc and BHP Billiton Ltd. climbed more than 1 percent.
Transocean Ltd. advanced 1.7 percent after the owner of the rig that sank in the Gulf of Mexico in 2010 settled its remaining issues with BP Plc. The two companies said they agreed to release all claims against each other, with BP paying Transocean $125 million to compensate for legal fees.
Booker Group Plc jumped 9.4 percent after proposing to return cash to shareholders and saying it will buy the Londis and Budgens businesses from Musgrave Group Plc. Qinetiq Group Plc rallied 8.1 percent after the U.K. defense specialist posted annual earnings that beat estimates.
Federal Reserve officials didn’t expect to raise interest rates in June, according to minutes from their last meeting released Wednesday. Reports are due later today on U.S. jobless claims, manufacturing, existing home sales and leading indicators.
Investors are also watching developments in Greece, with the country’s prime minister due to engage with European leaders at a meeting in Riga, Latvia, on Thursday. The ECB yesterday approved the smallest increase in emergency cash for the country’s lenders since tensions re-emerged in February, a sign that deposit outflows may be easing as political talks on the nation’s finances improve. The ASE Index was little changed.
