By Carla Mozee, MarketWatch
LONDON (MarketWatch) -- European stocks turned lower Thursday,
unable to gain traction after quarterly growth in the U.S., the
world's largest economy, was revised higher.
The Stoxx Europe 600 index shed 0.1% to 330.52, but had seen
slight gains during the session. The benchmark was held back in
part by losses among U.K. equities.
The pullback in European stocks came alongside a lower open for
Wall Street, as the U.S. government upgraded fourth-quarter
economic growth to 2.6% from 2.4%, largely on the back of higher
spending on health care. At the same time, an increase in business
investment was lower than previously estimated.
The finance sector was in focus after the U.S. Federal Reserve
on Wednesday rejected the capital plans for the U.S. arms of
British multinational HSBC Holding PLC , Spain's Santander and
Royal Bank of Scotland Group . The Fed also nixed Citigroup Inc.'s
(C) plan, saying the firm didn't make sufficient progress in
improving risk-management and control practices.
In London, shares of HSBC shed 0.9%, and Royal Bank of Scotland
shares fell 1.3%. Santander shares in Madrid swung down by
0.1%.
Regional equities had opened lower, following up on accelerated
selling Wednesday on Wall Street after U.S. President Barack Obama
urged European leaders to join the U.S. in a unified response
against Russia over its annexation of the Ukrainian breakaway
region of Crimea. Russia's Micex index lost 1.7% on Thursday.
Spotlight Ideas's Stephen Pope said in emailed comments that he
remains positive on the outlook for large-cap European equities, as
their ability to generate revenue on a global basis "provides a
healthy immunization from any potential European downturn if the
tension with Russia were to become more serious. The running
undercurrent is that the ECB will seek additional ways to boost the
economy, and try and finesse a way to bring about a fall in the
euro."
The International Monetary Fund on Thursday said it reached a
deal to provide up to $18 billion to Ukraine as part of an economic
reform program for the country. Changes required for the aid
package may be "painful," Ukraine's central bank chief Stepan Kubiv
reportedly said.
In France, a survey showed growth in consumer confidence in
March. Insee, the national statistics agency, said the index rose
to 88, from 85 in February, returning to a level seen in July 2012.
France's CAC 40 narrowed its decline after the data, but returned
to a deeper loss of 0.5%, at 4,362.82.
Germany's DAX 30 gave up an earlier advance and fell 0.2% to
9,427.69.
The U.K.'s FTSE 100 fell 0.6% to 6,568.81, held back in part by
declines among miners and banks. Meanwhile, the U.K. regulator
overseeing the electricity and gas markets called for an
investigation of providers over concerns about stalled competition.
Shares of British Gas owner Centrica PLC reversed course and rose
0.6%, but SSE PLC remained lower, by 2.8%.
Outside of equities, the British pound (GBPUSD) jumped above
$1.66 against the U.S. dollar after February retail-sales figures
beat analyst expectations.
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