TMCnet News

European Stocks Ease On Profit Taking
[April 23, 2014]

European Stocks Ease On Profit Taking


(Alliance News Via Acquire Media NewsEdge) VIENNA (Alliance News) - European stocks posted modest losses on Wednesday. The slide was prompted by some profit taking, as investors eased their long positions following the previous session's rally.



A new batch of earnings reports and data out of China affected trading. The latest statistics showed that activity in the Chinese manufacturing sector contracted for a fourth straight month in April, a worrisome sign for for the global economy.

Most of the region's major equity markets saw a notable rally on Tuesday, as traders got back to work following a four-day Easter weekend. Following the steep advance, many participants decided to lock in some profits during Wednesday's session.


Shares generally held near the flatline early in the session, with the UK posting gains in the early going. However, the major averages drifted lower through the session, with Germany and France closing near their lows of the session.

The UK's FTSE 100 index retreated 7.02 points, or 0.11%, to close the day at 6,674.74. Germany's DAX index fell 55.90 points, or 0.58%, to end at 9,544.19. France's CAC 40 index slipped 33.13 points, or 0.74%, to finish at 4,451.08.

Some data about the eurozone economy was released on Wednesday. Growth in the eurozone's private sector economy accelerated at its fastest pace in almost three years in April, survey data from Markit Economics showed. The composite output index rose unexpectedly to 54.0 from 53.1 in March.

Meanwhile, the minutes of the Bank of England's most recent monetary policy committee meeting showed that the Committee's August 2013 policy guidance remains in place and no member thought it appropriate to tighten, or to loosen, the stance of monetary policy at the current juncture.

In stock-specific action, Swedish mobile network equipment maker Ericsson reported sales and operating profit that fell below expectations.

Meanwhile, there was a Bloomberg report that Deutsche Bank is reducing its equities team in Latin America and considering closing its equities business in Chile as part of its efforts to cut costs.

Copyright RTT News/dpa-AFX

[ Back To TMCnet.com's Homepage ]