By Carla Mozee, MarketWatch
LONDON (MarketWatch) -- European stocks fell Tuesday, stepping
away from the record highs reached after better-than-expected
German and Spanish data showed upbeat developments in both
economies.
The Stoxx Europe 600 fell 0.9% to 387.68, with all sectors
finishing in the red, including a roughly 1.3% drop in the
financial group. The index in recent sessions has been hitting its
best levels since 2007, with analysts attributing the gains to an
anticipated flood of liquidity from the European Central Bank's
asset-purchase program.
Investors will watch for remarks about the program and prospects
for the eurozone economy when the central bank meets Thursday.
Germany on Tuesday issued data showing improvement in retail
sales in Europe's largest economy. Sales climbed 2.9% in January
over December, a reading that beat expectations of a 0.3% decline.
Sales surged 5.3% on a 12-month basis, the fastest growth rate
since June 2010.
"Cheap oil, healthy income gains, low interest rates and fading
risks combined for a very strong start to the year for German
retailers," Berenberg senior economist Christian Schulz wrote
following the data. "Private consumption looks set to be a major
growth driver in 2015 and, at this rate, would put a severe upside
risk to our forecast of GDP growth of merely 0.3% [on a
quarter-over-quarter basis in the first quarter]."
See:'Legendary' German retail data signal Europe is turning a
corner.
(http://www.marketwatch.com/story/legendary-german-retail-data-signal-europe-is-turning-a-corner-2015-03-03)
Germany's DAX 30 looked poised after the retail data to notch
its 21st record close of 2015, but investors booked recent gains
and ushered the index lower by 1.1% to a closing level of
11,280.36.
The Employment and Social Security Ministry in Spain, meanwhile,
said that country's jobless claims unexpectedly and sharply fell by
a seasonally adjusted 13,538 in February. Spain's IBEX 35 had risen
after the report, putting it on track for its best close since
April 2010, but eventually gave up those gains to end down 1.5% at
11,014.70.
Tuesday's decliners included Barclays PLC , whose shares were
down 3.2% as fines and legal costs pushed the banking heavyweight
to a yearly net loss of 174 million pounds
(http://www.marketwatch.com/story/barclays-posts-net-loss-on-fines-legal-costs-2015-03-03)
(or $267.4 million). That drop put pressure on the U.K.'s FTSE 100
, which closed 0.7% lower at 6,899.13.
(http://www.marketwatch.com/story/ftse-100-pushes-to-record-high-but-glencore-barclays-fall-2015-03-03)
France's CAC 40 also turned lower, closing with a loss of 1% at
4,869.25.
Meanwhile, Greece's Athex Composite rose 0.3% to 861.24, as
Russia's Micex index gained 1.4% to 1,807.70.
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