European stocks ended lower Wednesday, led by a tumble in the financial sector on the heels of a fall in Asian markets.
The Stoxx Europe 600 SXXP, -1.54% shed 1.5% to end at 329.43, suffering a third straight losing session.
But advancers included Syngenta AG SYNN, +2.73% SYT, +2.01% The Swiss seed-and-pesticide giant’s shares climbed 2.7% after the company received a $43 billion takeover offer from China National Chemical Corp. Syngenta has endorsed the offer.
European equities had a weak lead-in from Asia, where Japan’s Nikkei Stock Average NIK, -3.15% stumbled 3.2% on weak corporate earnings and as investors rushed into the safety of the yen USDJPY, -1.89% A signal from Bank of Japan Governor Haruhiko Kuroda for further stimulus didn’t aid Japanese shares. Hong Kong’s Hang Seng Index HSI, -2.34% closed 2.3% lower.
Aversion to the perceived risk of stocks trumped a rise in oil prices and better-than-expected services data from China, said Jasper Lawler, analyst at CMC Markets, in a note. Financial stocks led declines, he added.
“Major central banks, including the Federal Reserve, are steering back away from higher interest rates which could have served to boost bank lending margins,” Lawler said. U.S. stocks were lower Wednesday as well, with sharp losses for financials.
European equities held to losses after a report showed U.S. private-sector employment increased by 205,000 jobs in January, but that pace was slower than a revised 267,000 jobs added in December. The euro EURUSD, +1.4195% however, gained against the dollar after the data and recently traded at $1.1055.
The shared currency earlier Wednesday was little changed around $1.0919 after the eurozone services purchasing managers index for January matched an initial reading of 53.6. The euro late Tuesday bought $1.0922.
National indexes: A rising euro isn’t particularly helpful for European exporters, particularly for Germany’s export-oriented economy. Germany’s DAX 30 DAX, -1.53% remained lower as the euro rose, losing 1.5% to end at 9,434.82.
The U.K’s FTSE 100 UKX, -1.43% fell 1.4% to finish at 5,837.14 and France’s CAC 40 PX1, -1.33% lost 1.3% to close at 4,226.96.
Source: MarketWatch
