Euro strengthens on German growth data
On Tuesday European stocks tried and failed to shrug off the negative sentiment that spurred broad-based declines in Asia, eventually reversing gains as the region’s single currency strengthened on German growth data. Bonds turned positive as the world’s most powerful central bankers gathered in Frankfurt, and both the dollar and pound slipped.
The Stoxx Europe 600 Index retreated as the euro advanced against all its G-10 peers after German GDP came in well above estimates in the third quarter. Mining companies led the drop, with many commodity prices also falling in the wake of data showing China’s economy moderating. That also weighed on Asian equity gauges, though the Nikkei closed little changed after dropping for four days. The British pound was tipped lower as inflation missed forecasts, and the dollar broke out of a tight range to weaken as traders continue to weigh the chances of a meaningful tax overhaul.
The Stoxx Europe 600 Index sank 0.2 percent as of 10:37 a.m. London time, hitting the lowest in seven weeks with its sixth consecutive decline. The MSCI All-Country World Index fell less than 0.05 percent to the lowest in more than two weeks. The U.K.’s FTSE 100 Index jumped 0.1 percent. Germany’s DAX Index gained less than 0.05 percent. The MSCI Emerging Market Index rose 0.1 percent, the largest advance in a week. Futures on the S&P 500 Index dipped 0.1 percent to the lowest in more than a week. The Nikkei 225 Stock Average closed little changed, while the Topix index lost 0.3 percent in a fourth day of losses. The MSCI Asia Pacific Index fell 0.3 percent in a third day of losses.
Gold fell 0.4 percent to $1,273.49 an ounce, the weakest in more than a week. West Texas Intermediate crude declined 0.3 percent to $56.58 a barrel, the lowest in more than a week.