By Carla Mozee, MarketWatch
LONDON (MarketWatch) -- European stocks trudged higher
Wednesday, but gains were small after a run of six straight wins
for the region's equity benchmark.
The Stoxx Europe 600 index picked up 0.1% to 336.71, a mild rise
after strong advances for regional stocks in the previous session
that were supported by upbeat manufacturing readings from the euro
zone and the U.S. The index on Tuesday closed up 0.6%.
Stocks remained thinly higher after Eurostat's report that
producer prices in the euro zone fell in February, by 0.2% on a
month-over-month basis, as energy prices declined. In an annual
comparison, producer prices fell 1.7%, meeting median
expectations.
Deflationary threats to the euro zone increase pressure on the
European Central Bank -- which meets Thursday -- to act in an
effort "to stimulate the economy and tackle the issue of deflation
head on," said ETX market strategist Ishaq Siddiqi, who added in a
note that earlier this week, harmonized inflation for the euro zone
fell.
Among the sharpest stock decliners on Wednesday was Deutsche
Boerse AG , down 2.5% as the German exchange operator said its
Clearstream Banking unit is subject to a criminal investigation in
the U.S. related to alleged violations of money laundering and Iran
sanction laws.
France's CAC 40 was down less than 1 point at 4,426.47, easing
back from gains Wednesday when the index logged its highest closing
level since September 2008. Pressure on Wednesday came in part from
steelmaker ArcelorMittal . Its shares were dragged 1.7% lower after
a ratings downgrade to neutral from outperform at Credit Suisse,
"based on lack of earnings momentum, cycle risk and valuation."
The U.K.'s FTSE 100 strengthened by 0.2% to 6,669.78, led by
mining stocks and Marks & Spencer PLC after a report the
retailer has plans to expand.
Germany's DAX 30 index rose 0.1% to 9,613.91, aided by a 3.8%
gain in shares of Deutsche Post AG following a projection of
earnings growth from the logistics and mail company.
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