By Sara Sjolin, MarketWatch
LONDON (MarketWatch) -- European stock markets wobbled in early
action on Tuesday, with investors awaiting the latest gauge of
German investor confidence, the ZEW economic sentiment indicator,
to outline if the euro zone's largest economy is making
progress.
The Stoxx Europe 600 index lost 0.1% to 304.13, adding to a 0.2%
drop from Monday, when the index snapped a four-day winning
streak.
Shares of Severn Trent PLC soared 16%, after the water-utility
firm said it received a "very early stage" bid approach, although
no proposal has been made.
Deutsche Post AG gained 3.4%, after the company reported more
than 45% rise in first-quarter adjusted profit.
Investors were also waiting for the release of the German ZEW to
gauge if Europe's economic powerhouse is on track to lead the
region out of growth woes. In April, the index fell more than
expected to 36.3, but is expected to rebound to around the 40 level
in May. German trade data and industrial-production figures
released last week beat market expectations, fueling hopes the
economy is picking up after a soft patch earlier in the year.
The DAX 30 index dropped 0.3% to 8,258.03 in Tuesday's trade,
retreating from an all-time high reached on Monday.
Banks were posting the biggest losses in Germany, with
Commerzbank AG down 2.4%, after announcing a 2.5 billion euros
($3.25 billion) capital increase to repay German state aid and
boost the bank's equity capital. The price of the new shares will
be EUR4.5 a share, a 55% discount to Monday's closing price.
Deutsche Bank AG (DB) gave up 2.3%.
In France, European Aeronautic Defence & Space Co. rose
1.3%, after the firm kept its earnings guidance for 2013, but
reiterated that the Airbus A350XWB long-range aircraft program
remains "challenging."
The CAC 40 index , however, dropped 0.5% to 3,926.52.
The U.K.'s FTSE 100 index fell 0.6% to 6,627.66, on track to
break an eight-day winning streak.
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