By Carla Mozee, MarketWatch
LONDON (MarketWatch) -- European stocks slipped Monday,
extending a run of declines stemming from concerns about stagnant
growth in the eurozone.
The Stoxx Europe 600 index ended down 0.1% at 321.56 after
spending much of the session in higher territory. The intraday
gains for the index were driven by technicals "rather than
fundamentals," said Christian Tegllund Blaabjerg, senior strategist
at Danske Bank Markets, in emailed comments.
The Stoxx 600 last week fell 4.1%, the worst weekly decline
since May 2012. It came largely as dreary data from Germany fueled
concerns about a possible contraction in Europe's biggest
economy.
It's the "threat of the eurozone plunging into recession for the
third time that's really knocked sentiment," said Joao Monteiro,
analyst at Valutrades, in a note on Monday. "[U]ntil we see
something that serves to convince the market otherwise, then the
shakeout may well continue."
The release of corporate financial results will pick up pace in
Europe as well as in the U.S. in the coming days. Earnings for
European companies are expected to grow 7%, said Tegllund
Blaabjerg, "which will not be beaten in my view."
Aggregated third-quarter revenue for Stoxx 600 companies is
poised to pull back by 0.8% from the year-earlier period, according
to figures released Friday by Thomson Reuters. Just four of 10
sectors are expected to post higher sales, with utilities set to
log the lowest rate of growth.
Market action: Downgrades in the chip sector weighed on the
Stoxx 600. Infineon Technologies AG lost 2.1% after its rating was
cut to neutral from overweight at J.P. Morgan Cazenove, which cited
weakening demand both in Europe and China. STMicroelectronics NV
was also cut to neutral from overweight, and its shares dropped
4.6%.
Luxottica Group SpA sat at the bottom of the Stoxx 600, losing
9% after Chief Executive Enrico Cavatorta resigned roughly two
months after he took the reins at the eyewear maker.
But topping the Stoxx 600 was Anglo-American PLC , gaining 4.7%
following an upgrade of the iron ore miner to outperform from
neutral at Credit Suisse.
In France, the CAC 40 rose 0.1% to 4,078.70, and Germany's DAX
40 gained 0.3% to 8,812.43. The FTSE 100 index ended 0.4% higher at
6,366.24.
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