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European (SXXP) stocks fell, snapping a four-day rally for the benchmark Index, before a report that may show American retail sales stagnated and as euro-area finance ministers prepared to meet in Dublin. U.S. index futures and Asian shares were little changed.
Cap Gemini SA (CAP) declined the most in three weeks after Indian peer Infosys Ltd. forecast annual sales that were lower than analysts’ estimates. Croda International Plc (CRDA) lost 2.2 percent after UBS AG downgraded its recommendation on the stock. Rio Tinto Group retreated 1.4 percent after halting operations at its Utah copper mine due to a wall slide.
The Stoxx Europe 600 Index dropped 0.3 percent to 294.14 at the 8:04 a.m. in London, paring the increase this week to 2.4 percent. Contracts on the Standard & Poor’s 500 Index slid less than 0.1 percent, while the MSCI Asia Pacific Index slipped 0.2 percent.
“A solid week of gains has satiated the bulls,” Jonathan Sudaria, a trader at Capital Spreads in London, wrote in a note. “One reason for the bulls taking a little money off the table is the start of the two-day Ecofin meeting where an extension to Portugal’s bailout repayment terms are set to be discussed. The ballooning Cypriot bailout and the issue of Slovenia are sure to raise uncertainty.”
European stocks yesterday posted their biggest four-day gain since early January as a report showed American unemployment claims fell more than forecast. The Stoxx 600 has rallied 5.5 percent so far this year on optimism that central banks around the world will continue measures to support economic recovery.
Retail Sales
In the U.S., retail sales stagnated in March, economists said before a report at 8:30 a.m. inWashington. The value of purchases was little changed last month after a 1.1 percent increase in February that was the biggest gain in five months, according to the median forecast of 85 economists surveyed by Bloomberg.
In the euro area, finance ministers will try to reach an agreement on extending rescue-loan maturities for Ireland and Portugal at their meeting in Dublin, Dutch Finance Minister Jeroen Dijsselbloem said.
Irish and Portuguese rescue programs face uncertainty from events like the depositor losses imposed in Cyprus and would benefit from a strong signal of European Union support, Eurogroup Working Group President Thomas Wieser said.
Software Revenue
Cap Gemini, France’s biggest computer-services company, dropped 3.4 percent to 34.52 euros, the biggest decline since March 21. Infosys Ltd., India’s second-largest software-services exporter said it expects revenue to increase 6 percent to 10 percent in the year ending March 2014. Analysts estimated sales growth of 12.7 percent, based on the average of 66 estimates compiled by Bloomberg.
Croda, the world’s second-largest maker of cosmetic ingredients, slid 2.2 percent to 2,655 pence. The shares were downgraded to sell from neutral at UBS.
BAE Systems Plc, the U.K. military-aircraft manufacturer, dropped 2.6 percent to 386.9 pence. The stock was cut to underweight, a rating similar to sell, from neutral at JPMorgan Chase & Co.
Rio Tinto dropped 1.4 percent to 3,096.5 pence. The world’s second-biggest mining company suspended operations at Bingham Canyon after the pit wall failure late on April 10. Rio said the slide occurred along a geotechnical fault line. Producers are struggling with falling ore grades at aging mines, while new large discoveries are scarce, bolstering the outlook for prices.
To contact the reporter on this story: Tom Stoukas in Athens at astoukas@bloomberg.net
To contact the editor responsible for this story: Andrew Rummer at arummer@bloomberg.net
Source bloomberg.org
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