After a string of three weekly gains, European stock markets pulled lower on Monday, with car makers posting some of the biggest losses after a broker downgrade.
The Stoxx Europe 600 index dropped 0.3% to 319.11, adding to a small loss on Friday. The benchmark, however, closed out last week 0.5% higher, for the largest three-week gain since Sept. 20.
Auto makers were among top decliners after J.P. Morgan Cazenove cut the sector to neutral from overweight and instead moved funds to utilities, raising them to neutral from underweight.
'Autos are the best performing sector year-to-date in Europe, up 31%, more than double the performance of the overall market,' Mislav Matejka, its chief European equity strategist, wrote in a note. He cautioned that the sector could be vulnerable to some profit-taking in the near term.
'We think that their earnings momentum could be stalling in the near term as PMIs have stopped moving higher,' he added.
Shares of Peugeot SA (PEUGF.NaE) skidded 6.8% and Renault SA (RNSDF.NaE) fell 3.8% in Paris, Fiat SpA (FIADF.NaE) dropped 4.1% in Milan and BMW AG and Daimler AG (DDAIF.NaE) both lost more than 1.5% in Frankfurt.
More broadly, investors were waiting for more signals from the U.S. about when the Federal Reserve could begin tapering its monthly bond purchases before placing any bigger positions.
A U.S. gauge of consumer sentiment fell to the lowest reading in almost a year on Friday, adding to hopes that the Federal Reserve will delay the tapering process until 2014. The Federal Open Market Committee meets on Tuesday and Wednesday this week, and most analysts expect no changes to interest rates or the quantitative-easing program.
U.S. stock futures pointed to a mixed open on Wall Street . Most Asian markets closed higher.
Among country-specific indexes in Europe, the U.K.'s FTSE 100 index fell 0.2% to 6,710.92, while Germany's DAX 30 index gave up 0.2% to 8,969.28. France's CAC 40 index dropped 0.8% to 4,240.36.
Shares of Gemalto NV (GTOFF.NaE) lost 2.2% after Credit Suisse cut the digital-security firm to neutral from outperform and lowed revenue estimates.
On a more upbeat note, shares of TNT Express NV (TNTEF.NaE) climbed 4.1% after the Dutch parcel-delivery firm said it will take further steps to improve its business as market conditions remain challenging.
Shares of Assa Abloy AB (ASAZF.NaE) rose 4.2% after the Swedish lockmaker reported a 5% rise in third-quarter sales.
Link: https://www.fidelity.co.uk/investor/news-views/today-in-the-markets/europe-detail.page?resId=201310280513MRKTWTCHNEWS_SVC_98B11602-3FAB-11E3-A418-00212803FAD6&requestId=1&showChain=true&FullArticle=true
The Stoxx Europe 600 index dropped 0.3% to 319.11, adding to a small loss on Friday. The benchmark, however, closed out last week 0.5% higher, for the largest three-week gain since Sept. 20.
Auto makers were among top decliners after J.P. Morgan Cazenove cut the sector to neutral from overweight and instead moved funds to utilities, raising them to neutral from underweight.
'Autos are the best performing sector year-to-date in Europe, up 31%, more than double the performance of the overall market,' Mislav Matejka, its chief European equity strategist, wrote in a note. He cautioned that the sector could be vulnerable to some profit-taking in the near term.
'We think that their earnings momentum could be stalling in the near term as PMIs have stopped moving higher,' he added.
Shares of Peugeot SA (PEUGF.NaE) skidded 6.8% and Renault SA (RNSDF.NaE) fell 3.8% in Paris, Fiat SpA (FIADF.NaE) dropped 4.1% in Milan and BMW AG and Daimler AG (DDAIF.NaE) both lost more than 1.5% in Frankfurt.
More broadly, investors were waiting for more signals from the U.S. about when the Federal Reserve could begin tapering its monthly bond purchases before placing any bigger positions.
A U.S. gauge of consumer sentiment fell to the lowest reading in almost a year on Friday, adding to hopes that the Federal Reserve will delay the tapering process until 2014. The Federal Open Market Committee meets on Tuesday and Wednesday this week, and most analysts expect no changes to interest rates or the quantitative-easing program.
U.S. stock futures pointed to a mixed open on Wall Street . Most Asian markets closed higher.
Among country-specific indexes in Europe, the U.K.'s FTSE 100 index fell 0.2% to 6,710.92, while Germany's DAX 30 index gave up 0.2% to 8,969.28. France's CAC 40 index dropped 0.8% to 4,240.36.
Shares of Gemalto NV (GTOFF.NaE) lost 2.2% after Credit Suisse cut the digital-security firm to neutral from outperform and lowed revenue estimates.
On a more upbeat note, shares of TNT Express NV (TNTEF.NaE) climbed 4.1% after the Dutch parcel-delivery firm said it will take further steps to improve its business as market conditions remain challenging.
Shares of Assa Abloy AB (ASAZF.NaE) rose 4.2% after the Swedish lockmaker reported a 5% rise in third-quarter sales.
Link: https://www.fidelity.co.uk/investor/news-views/today-in-the-markets/europe-detail.page?resId=201310280513MRKTWTCHNEWS_SVC_98B11602-3FAB-11E3-A418-00212803FAD6&requestId=1&showChain=true&FullArticle=true
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