By Sara Sjolin, MarketWatch
LONDON (MarketWatch) -- European stock markets moved mostly
lower on Tuesday after the German ZEW survey indicated investors
are less optimistic about the economic future in the euro zone's
largest economy than they were a month ago.
The Stoxx Europe 600 index lost 0.2% to 333.85, partly erasing a
0.4% gain from Monday.
Among notable movers in Tuesday's action, shares of John Wood
Group PLC climbed 5.3% after the oil- and gas-services company
posted a rise in 2013 pretax profit and said it is well positioned
for the longer term.
Delhaize Group SA gained 4.3% after Morgan Stanley lifted the
Belgian supermarkets firm to overweight from equal weight,
according to Dow Jones Newswires.
On a more downbeat note, shares of Industria de Diseno Textil SA
, also known as Inditex, dropped 3.7% after Citigroup cut the
fashion retailer to neutral from buy. The analysts said Inditex is
one of the few beneficiaries of the shift to online sales, but that
the Spanish firm will be impacted by the emerging-market currency
translation.
Shares of Air Liquide SA fell 1.6% after the industrial-gas
supplier reported a slight drop in 2013 sales.
More broadly, investors digested the latest data from European
powerhouse Germany, which unexpectedly showed economists and
analysts are less confident about the economic future than they
were in January. The February ZEW indicator of economic sentiment
declined 6 points to 55.7 and missed analysts expectations of 62.7,
according to FactSet estimates. The drop marks the second weakening
in a row, following the January survey's fall to 61.7, after
reaching a seven-year high of 62 in December.
"This month's decline in economic expectations must not be
overstated. The majority of surveyed financial market experts
remain optimistic," ZEW-President Clemens Fuest, said in the
release.
The current-situation assessment was more upbeat and gained 8.8
points in February to 50, reaching its highest level since August
2011.
Germany's DAX 30 index traded 0.2% lower at 9,636.76 after the
data. France's CAC 40 index dropped 0.3% to 4,320.80 and the U.K.'s
FTSE 100 index gained 0.4% to 6,765.82.
In the U.K., the Office for National Statistics said annual
inflation fell to 1.9% in January from 2% a month earlier, slipping
below the Bank of England's target in January for the first time in
more than four years.
Shares of Centrica PLC dropped 1% in London after UBS cut the
utility firm to sell from neutral. The analysts said the company
faces risks from political intervention as the Labour Party seeks
to freeze energy bills in the U.K.
Shares of InterContinental Hotels Group PLC gave up 3.1% after
analysts expressed concerns with the hotel operator's capital
expenditures in 2014.
In Germany, Hochtief AG rallied 4.8% after Goldman Sachs lifted
the construction firm to buy from neutral.
"Hochtief's ability to continue buying back its relatively small
free float (30%) adds technical support to a relatively attractive
valuation," the analysts said in a note.
Outside the major indexes, shares of Pandora AS climbed 2.1%
after the Danish jeweler said it will launch a new share-buyback
program as it posted record full-year revenue.
After being closed on Monday for Presidents Day, U.S. stocks
traded mostly lower on Wall Street after a weak report on
manufacturing activity in the New York region and downbeat housing
data. The Empire State index slipped to 4.5 in February after
soaring to 12.5 in January, which was the highest level since May
2012. Meanwhile, a gauge of confidence among home builders plunged
in February to the lowest level in nine months.
More must-reads from MarketWatch:
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