By Carla Mozee, MarketWatch
LONDON (MarketWatch) -- European stocks trudged higher
Wednesday, but gains were small after a run of six-straight wins
for the region's equity benchmark.
The Stoxx Europe 600 index picked up 0.2% to 337.04, a mild rise
after strong advances for regional stocks in the previous session
that were supported by upbeat manufacturing readings from the euro
zone and the U.S. The index on Tuesday closed up 0.6%.
Stocks added thin gains after data released during afternoon
trade showed U.S. private-sector employment increased by 191,000
jobs, up from 178,000 in February, according to Automatic Data
Processing. That was below expectations of an addition of 200,000
jobs, The Wall Street Journal reported. ADP's figures arrived ahead
of the widely watched U.S. monthly jobs report, due Friday.
European stocks also held to mild gains after Eurostat's report
that producer prices in the euro zone fell in February, by 0.2% on
a month-over-month basis, as energy prices declined. In an annual
comparison, producer prices fell 1.7%, meeting median
expectations.
Deflationary threats to the euro zone increase pressure on the
European Central Bank -- which meets Thursday -- to act in an
effort "to stimulate the economy and tackle the issue of deflation
head on," said ETX market strategist Ishaq Siddiqi, who added in a
note that earlier this week, harmonized inflation for the euro zone
fell.
Among the sharpest stock decliners on Wednesday was Deutsche
Boerse AG , down 2.3% as the German exchange operator said its
Clearstream Banking unit is subject to a criminal investigation in
the U.S. related to alleged violations of money laundering and Iran
sanction laws.
France's CAC 40 was up less than 1 point at 4,429.12, a day
after the index logged its highest closing level since September
2008. Pressure on Wednesday came in part from steelmaker
ArcelorMittal . Its shares were dragged 1.6% lower after a ratings
downgrade to neutral from outperform at Credit Suisse, "based on
lack of earnings momentum, cycle risk and valuation."
The U.K.'s FTSE 100 moved up 0.1% to 6,658.22, led by mining
stocks and Marks & Spencer PLC after a report the retailer has
plans to expand.
Germany's DAX 30 index rose 0.2% to 9,625.12, with shares of
Deutsche Post AG up 4.4% following a projection of earnings growth
from the logistics and mail company.
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