Today in the markets (Europe)

Europe stocks drop on Cyprus confusion, U.S. data
MARKETWATCH — LAST UPDATE: 12:44 12/04/2013


LONDON (MarketWatch) -- European stock markets dropped on Friday, hammered by disappointing U.S. retail sales and confusion whether Cyprus was asking for more assistance for its bailout program.

The Stoxx Europe 600 index lost 0.7% to 293.02, after putting in its strongest four-day performance since early January.

Shares of German chemicals firm K+S AG (KPLUF.NaE) fell 3.7%, as Deutsche Bank cut the firm to sell from hold, saying current valuation looks too expensive and potash prices will remain under pressure.

On a more upbeat note, shares of JCDecaux SA (JCDXF.NaE) jumped 4.8%. Exane BNP Paribas lifted the advertising company to outperform from underperform, citing potential benefits from urbanization and investments in infrastructure in emerging markets.

For the broader European markets, stocked extended their move lower on media reports Cyprus was asking for extra assistance from the European Union to help get the country back on track amid financial turmoil. The country's finance ministry reportedly quickly denied the reports, saying President Nicos Anastasiades instead was referring to technical and structural reforms.

The Eurogroup of euro-zone finance ministers was scheduled to meet on Friday in Dublin to finalize the terms of the country's rescue package.

U.S. stock-index futures also pointed to a lower open, after data showed retail sales in March posted the biggest slide in nine months, as consumers cut back on most kinds of consumer goods. Sales fell a seasonally adjusted 0.4%, below forecasts of a 0.1% decline.In Europe, data for the euro zone showed industrial production rose 0.4% in February.

'Euro-zone industry picked up in February, but the underlying trend in the official data is still one of a sector in decline and in line with the PMI, which suggests the industrial downturn has eased compared to late last year but gathered momentum again in March,' said Chris Williamson, chief economist at Markit in a note.

'Any further downturn in the euro-zone PMI in the second quarter could be the trigger for policy action from the ECB, which stands ready to act--possibly with a cut in interest rates--if business conditions deteriorate further,' he added.

Among major country-specific indexes, Germany's DAX 30 index slid 1.4% to 7,762.53, while France's CAC 40 index lost 1.1% to 3,734.10.

The U.K.'s FTSE 100 index gave up 0.4% to 6,393.34.