Japan Stock Still In Turmoil

stockEuropean 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.

Euro-zone PMIs are expected to show continued national divergence, with growth for Germany, but a deeper decline in France?s manufacturing sector. U.K. monetary policy will also be on the agenda with the release of BOE minutes and unemployment data.

Shares of Deutsche Bank AG 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 picked up 1.3% after private-equity firm KKR & Co. 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.

Movers and shakers

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.?s FTSE 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 lost 1.3% in London after J.P. Morgan Cazenove cut the bank to underweight from neutral.

Also in London, Burberry Group PLC 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. Financi?re Richemont SA 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.

Source MarketWatch


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