European stocks fell from a two-month high, dragged lower by declines in energy and commodity producers.
Losses of 2.3 percent or more in Glencore Plc and ArcelorMittal dragged miners to the worst performance among Stoxx Europe 600 Index groups, while Tullow Oil Plc and Seadrill Ltd. followed crude prices lower. Shares of exporters fell as the euro climbed, with car-makers PSA Peugeot Citroen and Renault SA retreating at least 1.3 percent.
The Stoxx 600 dropped 0.6 percent to 362.25 at 9:32 a.m. in London. The European Central Bank’s lending survey showed today that credit standards on loans to companies eased for the sixth consecutive quarter, spurred by its asset-purchase program. ECB policy makers meet in Malta on Wednesday and Thursday.
“The market is speculating intensively on further stimulus measures from the ECB as the euro zone economy faces headwinds from lower export demand, corporate disruptions and a wave of risk aversion from investors,” Markus Allenspach, head of fixed-income research at Julius Baer Group Ltd. in Zurich, wrote in a note. “we doubt that there is sufficient support within the government council for more quantitative easing at this juncture. There is room for disappointment going into this week’s ECB meeting.”
A report today showed Swiss watch exports had their biggest quarterly decline since 2009, sending shares of Swatch Group AG and Cie. Financiere Richemont SA at least 2 percent lower.
Some stocks rose after financial reports. Actelion Ltd. gained 3.1 percent after the Swiss drug maker raised its 2015 profit projection. Whitbread Plc and Assa Abloy AB added at least 1.6 percent after posting earnings that beat analysts’ estimates.
InterContinental Hotels Group Plc rallied 4.3 percent after the world’s largest provider of hotel accommodation said third-quarter room revenue rose in the third quarter.
UniCredit SpA gained 2.2 percent after Der Standard reported the lender may sell its Austrian consumer and small-company business to Bawag PSK Bank AG. UniCredit said it hasn’t made a decision yet regarding its unit in that country.
The Stoxx 600 climbed for the past three days amid positive financial results, closing at its highest level since August yesterday. The equity benchmark has rebounded this month, after a quarterly selloff triggered by concern over China’s slowdown and Volkswagen’s cheating scandal. It has trimmed its decline from an April record to 13 percent.
source: Bloomberg
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