European Central Bank President Mario Draghi
European (SXXP) stocks slipped, with the Stoxx Europe 600 dropping for a third day in four, as investors awaited a U.S. report on industrial production. Asian stocks and U.S. index futures declined.
Carlsberg A/S (CARLA), the biggest brewer in Russia, lost 2.3 percent after second-quarter profit missed estimates. Standard Chartered Plc (STAN) gained 2.7 percent after the company settled a New York money laundering probe for $340 million.
The Stoxx 600 fell 0.4 percent to 269.43 in London. European stocks last week rose for a 10th week, extending the longest streak since January 2006, amid better- than-expected company earnings and speculation policy makers will do more to stimulate the economy. The gauge has rallied 15 percent from this year’s low on June 4 as European Central Bank President Mario Draghi said that he will do anything to protect the 17-nation currency. The MSCI Asia Pacific Index (MXAP) dropped 0.5 percent, while Standard & Poor’s 500 Index futures fell 0.2 percent, Bloomberg reported Wednesday.
“European markets look set to give back a modest portion of yesterday’s gains,” Chris Weston, an institutional trader at IG Markets in Melbourne, wrote in a note to clients today. “Clarity needs to be restored, and until September it’s hard to see anything other than a continuation of the range-trading we are currently seeing.”
The Stoxx 600 climbed Tuesday as a report showed German growth slowed less than forecast, while minutes revealed that several Bank of Japan policy makers are prepared to stimulate the economy.
In the U.S., a Federal Reserve report at 9:15 a.m. in Washington may show that output at factories, mines and utilities rose 0.5 percent in July after increasing 0.4 percent a month earlier, according to the median forecast of 84 economists in a Bloomberg survey.
A separate report from the Federal Reserve Bank of New York at 8:30 a.m. may show factories in its region expanded output in August at about the same pace as in the prior month.
Spain’s government is considering a request for a sovereign bailout, European Economic and Monetary Affairs Commissioner Olli Rehn signaled.
“The Spanish government has an open mind on this issue, but no decision has been made,” Rehn said in a Bloomberg Television interview in New York yesterday. “We stand ready to act if there is a request.”
His remarks came after Prime Minister Mariano Rajoy said he would ask the European Central Bank to buy Spanish bonds “if it seems reasonable,” as he moved to extend unemployment subsidies for some of the nation’s 5.7 million jobless.
Carlsberg (CARLB) retreated 2.3 percent to 497.20 kroner as the world’s fourth-largest brewer said earnings before interest, tax and some one-time items fell 6.1 percent to 3.47 billion kroner ($574 million). That compares with the average estimate of 13 analysts surveyed by Bloomberg for 3.9 billion kroner.
Eurasian Natural Resources Corp. (ENRC), a Kazakh metals producer, dropped 2.3 percent to 405 pence. First-half sales of $3.25 billion missed the average $3.4 billion analyst estimate, and the company said the market is going to remain volatile with uncertain pricing. Net income for the period fell 60 percent to $463 million.