By Barbara Kollmeyer, MarketWatch
MADRID (MarketWatch) -- European stock markets fell on
Wednesday, extending a modest decline after weaker-than-expected
output data for the region, with drug and bank stocks leading the
way lower as investors questioned the recent run for equities.
ASM International NV, Inditex SA and Enel SpA were among the
biggest decliners.
The Stoxx Europe 600 index fell 0.3% to 294.47, after eking out
a gain of less than 0.1% in a lackluster session Tuesday after data
showed the U.K. slipping back into recession.
U.S. stock-market futures were pointing to a slightly lower
start for Wall Street on a busy data day, while the Shanghai
Composite Index fell 1.1%.
January euro-zone industrial-production fell 0.4% on a monthly
basis, a steeper-than-expected decline and the fourth fall in five
months, said economists at Capital Economics.
"January's fall in euro-zone industrial production is a timely
reminder that, despite the improvement in business and financial
market sentiment, the region may have remained in recession in Q1,"
said Ben May, European economist in a note.
Sluggish manufacturing output data out of the U.K. on Tuesday
raised fears that economy is headed for a triple-dip recession and
weighed on the British pound.
Among individual names, shares of ASM International (ASMI) slid
14% after the Dutch semiconductor firm said it would an 8% to 12%
stake in ASM Pacific Technology Ltd via a partial secondary share
placement. The company said it was making this move in order to
address the nonrecognition by markets of the value of the combined
business of the company.
Spanish retailer Inditex fell nearly 3% after the group reported
a 22% profit rise, but analysts were disappointed by fourth-quarter
sales, gross margin, cash generation, its dividend and
store-opening guidance.
The heavyweight for the Spain IBEX 35 helped drag that index
down 0.6% to 8,481, making it one of the worst-performing regional
markets.
Shares of Enel fell over 5% after the Italian utility reportedly
posted a drop in net income for 2012. The FTSEMIB Italy index fell
0.6% to 15,935.69.
Also in Italy, borrowing costs rose in the country's first bond
auction since the government's credit rating was cut to BBB plus
from A minus by Fitch Ratings last week.
Major banks fell across the board, with HSBC PLC (HBC) down 1%
and Standard Chartered PLC off more than 1%.
Over 1% losses from miners such as Rio Tinto PLC (RIO) and BHP
Billiton PLC (BHP) dragged the FTSE 100 index 0.7% lower to
6,461.08.
Autos also marked a weak spot for markets on Wednesday with
Renault SA losing 1.4% and Volkswagen AG down nearly a percent. The
French CAC 40 index fell 0.4% to 3,824.90 and the German DAX 30
index fell 0.2% to 7,949.17.
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