By Carla Mozee, MarketWatch
LONDON (MarketWatch) -- European stocks trudged higher
Wednesday, but the small gains were enough for the region's equity
benchmark to log a seventh consecutive win.
The Stoxx Europe 600 index picked up 0.2% to 336.93, spearheaded
by finance and metals shares as the index marked its longest string
of gains since mid-February. Regional stocks on Tuesday closed up
0.6%,supported by upbeat manufacturing reading from the euro zone
and the U.S.
But Wednesday's stock decliners included Deutsche Boerse AG ,
down 2.2% 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.
European stocks moved mildly higher 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.
Equities also held higher 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.
Christine Lagarde, managing director of the International
Monetary Fund, said Wednesday that "low-flation," particularly in
the euro area, is an emerging risk to advanced economies. She
called for further monetary easing by the European Central Bank and
continued efforts by the Bank of Japan.
Back to stock action, France's CAC 40 moved up 0.1% to 4,430.86,
adding to Tuesday's gain that left the index with its highest
closing level since September 2008. Finance issues advanced, but
overall gains for the CAC 40 were capped in part by steelmaker
ArcelorMittal . Its shares were dragged 1.5% 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 settled up by 0.1 % at 6,659.04, 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 9,623.36, with shares of
Deutsche Post AG up 4.6% following a projection of earnings growth
from the logistics and mail company.
Also, Volkswagen AG said it's signed a deal with labor union at
Scania that will go into effect if Volkswagen wins full control of
the Swedish truck maker. The auto maker's shares lost grip of gains
and closed down by 0.%.
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