By Dow Jones Business News,
January 20, 2014, 11:58:00 AM EDT
By Sara Sjolin, MarketWatch
LONDON (MarketWatch) -- European stock markets fell slightly Monday as investors digested a mixed bag of data from
China, while Deutsche Bank led banks lower after posting a surprise quarterly loss.
The Stoxx Europe 600 index slipped 0.1% to end at 335.50, after closing in positive territory for a second straight
week on Friday. U.S. stock markets were closed for Martin Luther King Jr. Day. U.S. stock futures, which were open for
trade until 11:30 a.m. Eastern time, were slightly lower.
Shares of Deutsche Bank AG ( DB ) skidded 5.4% after the bank on Sunday reported an unexpected pretax loss for the
fourth quarter, as it took charges for valuation adjustments and litigation costs. Additionally, The Wall Street Journal
reported that the German banking regulator BaFin is sending investigators into Deutsche Bank's offices as part of the
international currency-rigging probe.
Shares of Peugeot SA slid 11% after the car maker's board approved the broad outline of a possible 3 billion euro ($
4.1 billion) capital increase.
Anheuser-Busch InBev SA (AHBIY) picked up 1.3% after private-equity firm KKR & Co. (KKR.AE) and Affinity Equity
Partners reached a deal to sell Oriental Brewery back to the brewer.
More broadly, investors weighed a raft of data out of China. Gross domestic product for the fourth quarter showed
economy growth slowed slightly, while industrial-production growth in December eased a bit more than expected.
"The slowdown is somewhat expected as China transitions itself from an economy driven by consumer spending and
services rather than one reliant on debt-fueled investments and exports," said Ishaq Siddiqi, market strategist at ETX
Capital, in a note.
Overall, economic growth this year is expected to be between 7.2% to 7.4% , he added.
Among country-specific indexes in Europe, Germany's DAX 30 index fell 0.3% to 9,715.90, weighed by Deutsche Bank.
France's CAC 40 index slipped 0.1% to 4,322.86, while the U.K.'sFTSE 100 index closed 0.1% higher at 6,836.73.
The London benchmark was partly lifted by news that the International Monetary Fund plans to raise its outlook on the
U.K. this week to growth of 2.4% in 2014 from an earlier estimate of 1.9%, according to Sky News. A representative from
the IMF wasn't immediately available to respond.
Shares of Royal Bank of Scotland Group PLC (RBS) lost 1.3% in London after J.P. Morgan Cazenove cut the bank to
underweight from neutral.
Also in London, Burberry Group PLC (BURBY) gave up 1% after Credit Suisse cut the luxury-goods firm to neutral from
outperform. The analysts said they now think Burberry's "superior top-line momentum is unlikely to translate into
superior earnings growth versus its luxury peers over the next two years" and said they prefer Cie. Financière
Richemont SA , up 1.9%, and Swatch Group AG , 1.1% higher.
Meanwhile, Deutsche Bank said the luxury-goods sector should be shaping up in 2014 to deliver 8% sales growth and 12%
improvement in earnings per share. The bank raised Luxottica Group SpA to buy from hold, sending the shares 4% higher.
Air France-KLM SA dropped 5% in Paris after UBS cut the airline to neutral from buy.
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