By Carla Mozee, MarketWatch
LONDON (MarketWatch) -- European stocks fell Tuesday, with
losses picking up following disappointment over a key sentiment
reading from Germany, Europe's biggest economy.
European equities already had started on weaker footing after
Monday's rally, as the market has been awash in liquidity linked to
European Central Bank's asset-buying program.
The Stoxx Europe 600 on Tuesday fell 0.7% to 397.47, as
industrial, technology and consumer-services shares dipped. The
index fell to intraday lows after the release of the closely
watched German ZEW economic sentiment figure
(http://www.marketwatch.com/story/zew-economic-sentiment-in-germany-remains-high-2015-03-17).
The reading for March rose to 54.8, and although that is the
highest value since February last year, analysts polled by FactSet
had expected an even more-optimistic reading of 60.
While economic sentiment in Germany remains at a high level, the
"limited progress" in resolving the conflict in Ukraine and
Greece's debt crisis is having "a dampening effect on sentiment,"
said ZEW President Professor Clemens Fuest in a statement.
Separately, data from Eutostat confirmed consumer prices fell
0.3%
(http://www.marketwatch.com/story/europes-deflation-threat-eased-in-february-2015-03-17-64851124)
in March, meeting widely held expectations that the figure would
mirror the statistic agency's initial estimate.
Germany's DAX dropped 0.9% to 12,057.27, retreating from its
2.2% leap on Monday that pushed the index above 12,000 for the
first time. Analysts have said the export-oriented market has
benefited from a recent slide in the euro (EURUSD), as German goods
become cheaper for overseas customers.
Decliners in Frankfurt included Linde AG , whose shares fell
0.8% after Citi downgraded the industrial-gases producer to neutral
from buy, citing valuation concerns.
France's CAC 40 was down 0.3% to 5,045.23. But the U.K.'s FTSE
100 gained 0.3% to 6,822.02
(http://www.marketwatch.com/story/sainsbury-bhp-guide-ftse-100-higher-but-antofagasta-falls-2015-03-17),
with shares of J. Sainsbury PLC up 1.2%, following the supermarket
chain's trading update.
Shares of Antofagasta fell 4% in London and were among the worst
performers on the Stoxx 600. The move came after the copper miner's
yearly net profit fell to $459.8 million
(http://www.marketwatch.com/story/antofagasta-net-profit-falls-30-2015-03-17),
missing expectations of $676 million from a FactSet poll of
analysts.
The Stoxx 600 on Monday jumped 0.9%
(http://www.marketwatch.com/story/european-stocks-jump-with-germanys-dax-leaping-above-12000-2015-03-16)
and marked its first close above the 400 mark since June 2007,
according to FactSet data.
On Monday, ECB Governor Mario Draghi said an economic recovery
is taking hold in the currency bloc, thanks in part to the central
bank's stimulus moves
(http://www.marketwatch.com/story/ecb-president-draghi-says-eurozone-recovery-is-taking-hold-2015-03-17).
Last week, the ECB began buying government bonds and other debt
instruments under its quantitative-easing program.
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