By Tommy Stubbington and Saabira Chaudhuri
LONDON (MarketWatch) -- European stocks took a breather on
Monday from the previous week's rally, after closing at five-year
highs on Friday.
The Stoxx Europe 600 Index closed down 0.2%, snapping six
straight sessions of gains during the Christmas holiday period when
investors continued to take the U.S. Federal Reserve's recent
decision to scale back its stimulus as a positive sign for the
economy.
Germany's DAX closed 0.4% lower after hitting a fresh all-time
high Friday, while France's CAC 40 and London's FTSE 100 shed 0.1%
and 0.3%, respectively.
Despite sizable gains in 2013, many investors remain confident
that European equities can sustain their run next year.
"Unlike their global peers, European company profits and stock
markets remain well below peak," said Kevin Lilley, European equity
manager at Old Mutual Global Investors. "With attractive multiples,
a recovering economy, a return of international investors and an
unlimited European Central Bank backstop in place, Europe would
appear to have significant potential for 2014,"
In the U.S., shares were trading mixed after pending home sales
ticked up by 0.2% in November, falling short of economists'
expectations of 1%, according to the National Association of
Realtors.
In currency markets, the euro (EURUSD) and sterling (GBPUSD)
were both up against the dollar. Gold was down 0.7%, while silver
was down 1.7%.
In corporate news, shares of International Personal Finance led
gainers among the Stoxx after Numis bumped the home credit
business's stock into 'Buy' territory.
Nokian Renkaat Oyj said Monday that Finland's Tax Administration
has ordered the company to pay 26.9 million euros in additional
taxes, fees and interest for 2007. The Finnish tire maker said it
would appeal the decision. If the decision is upheld, the company's
corporate tax rate is expected to rise in the next five years, from
the previously announced 17% to a maximum 22%.
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