By Carla Mozee, MarketWatch
Pound falls after U.K. GDP misses forecast
European stocks fell Tuesday, with Commerzbank AG shares among
the biggest decliners, and as investors looked ahead to what the
U.S. Federal Reserve may say about growth prospects in the world's
largest economy.
Stoxx Europe 600 fell 0.7% to 409.76, with the utilities and
energy sectors the only ones moving higher.
Commerzbank shares were in focus, dropping 4.1% as the company
late Monday launched a share sale
(http://www.marketwatch.com/story/commerzbank-profit-nearly-doubles-to-issue-new-shares-2015-04-28)
in an effort to raise EUR1.4 billion from institutional investors.
Commerzbank shares weighed on Germany's DAX 30 , which fell 0.5% to
11,980.13.
The Stoxx 600 on Monday jumped 1%
(http://www.marketwatch.com/story/european-stocks-fall-with-deutsche-bank-greece-in-focus-2015-04-27)
following reports the team negotiating on behalf of debt-strapped
Greece with its international creditors was reshuffled. Meanwhile,
the euro (EURUSD) on Tuesday was trading at $1.0871, down from
$1.0891 late Monday.
"Markets are becoming increasingly cautious as the key [Federal
Reserve Open Market Committee] meeting begins to dominate the
thoughts of traders," wrote Richard Perry, market analyst at Hantec
Markets, noting that Wall Street on Monday
(http://www.marketwatch.com/story/us-stocks-investors-begin-the-wait-for-apple-results-fomc-meeting-2015-04-27)
took on a "cautious mood" that left the S&P 500 index (SPX)
down 0.4%.
Fed policy makers will begin a meeting later Tuesday and will
assess what's been a patch of weaker-than-expected economic
data.
The U.K.'s first-quarter gross domestic product report released
Tuesday showed the economy grew at a slower-than-anticipated pace
(http://www.marketwatch.com/story/uk-growth-disappoints-in-the-first-quarter-2015-04-28).
The pound (GBPUSD) dropped to $1.5179, down from $1.5225 just after
the Office for National Statistics said the economy expanded 0.3%
from the fourth quarter of 2014, and by 2.4% versus the year-ago
period. Analysts polled by FactSet had expected growth rates of
0.6% and 2.7%, respectively.
The U.K.'s FTSE 100 held to losses after the data
(http://www.marketwatch.com/storyno-meta-for-guid), down 0.8% at
7,044.82. But BP PLC (BP) outperformed, gaining 1.4% as the British
oil major's underlying replacement-cost profit for the first
quarter came in at $2.58 billion, above an expected $1.28
billion.
France's CAC 40 fell 0.9% to 5,221.10. Greece's Athex Composite
turned 0.1% lower to 794.15. Read: The fast and the slow route to a
'Grexit'
(http://www.marketwatch.com/story/the-fast-and-the-slow-route-to-a-grexit-2015-04-27)
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