German economic sentiment falls in June
European stocks finished higher Tuesday, with technology shares in recovery mode after a selloff in the previous session led the market to its biggest loss in nearly a month.
The Stoxx Europe 600 closed up 0.6% at 388.75, with only the telecom sector in the red. Technology and consumer services shares rose the most.
The pan-European index on Monday dropped 1% (http://www.marketwatch.com/story/european-stocks-pushed-down-by-tech-selloff-british-governments-woes-2017-06-12), its largest percentage decline since May 17, dragged down primarily by a drop in tech shares, which began abruptly Friday.
On Tuesday, the Stoxx 600 Technology Index gained 1.1%, but still had a way to go to recoup all of Monday's 3.6% loss.
"Having been such a one-way bet so far this year, this sudden turn to the downside [in tech stocks] will have caught out more than a few overeager latecomers. However, those rushing to proclaim the demise of one of the big rallies of not only the past year but the past eight years too need to be careful," said Chris Beauchamp, chief market analyst at IG, in a late Monday note.
"[T]here will be plenty of dip buyers out there who have been waiting for a pullback of this kind of size," he said.
Individual techs: In the tech group, Apple Inc. (AAPL) supplier Dialog Semiconductor (DLG.XE) picked up 5.8%, French payments technology provider Ingenico Group (ING.FR) added 1.7% and Swiss financial services software maker Temenos Group AG (TEMN.EB) put on 1.4%.
Among other Apple suppliers, Austrian chip maker AMS AG (AMS.EB) moved up 2.3%, and STMicroelectronics NV (STM) gained 1%. Those shares each fell more than 8% on Monday.
Stock movers: Capita PLC shares (CPI.LN) leapt 15% after the provider of outsourcing services said it expects profitability to improve in the second half of the year (http://www.marketwatch.com/story/capita-trading-in-line-remains-confident-2017-06-13). It also said trading since the start of the year is in line with its expectations.
Luxottica (LUX.MI) gained 3.1% after Morgan Stanley raised its rating on the eyewear maker to overweight from equal-weight. There should be "no material hurdles" in regulatory approval for a planned merger between Luxottica and Essilor International SA (EI.FR), said Morgan Stanley. Essilor shares were up 2%.
Deutsche Lufthansa AG shares (LHA.XE) climbed 3%. Credit Suisse raised its rating on the German air carrier to neutral from underperform, according to Dow Jones Newswires.
Merlin Entertainments PLC (MERL.LN) shares fell 2.7% after the theme park and resort operator said recent terror attacks have reduced domestic demand (http://www.marketwatch.com/story/merlin-trading-in-line-demand-down-after-attacks-2017-06-13). However, trading since the beginning of the year is in line with expectations, Merlin said.
Indexes: Germany's DAX 30 rose 0.6% to end at 12,764.98, and France's CAC 40 moved higher by 0.4% to 5,261.74. But the U.K.'s FTSE 100 fell 0.2% to 7,500.44 (http://www.marketwatch.com/story/ftse-100-rises-with-no-end-to-political-upheaval-in-sight-2017-06-13), hurt as the pound climbed back above $1.27.
The euro traded at $1.1206, little changed from late Monday. Investors will watch Wednesday if the Federal Reserve meets market expectations by raising interests rates, and look for any signal from Chairwoman Janet Yellen about the outlook for future rate increases.
Read:Yellen may be 'forceful' in press conference when defending Fed's interest rate path (http://www.marketwatch.com/story/yellen-may-be-forceful-in-press-conference-when-defending-feds-interest-rate-path-2017-06-13)
Economic data: German economic sentiment unexpectedly dropped in June (http://www.marketwatch.com/story/german-zew-economic-sentiment-drops-unexpectedly-2017-06-13), said the ZEW think tank, but added that the outlook for Europe's largest economy continues to be favorable.
Consumer prices rose in May at the fastest annual rate since June 2013, new data show. Inflation in the U.K. was at 2.9% in May, said the Office for National Statistics, exceeding forecasts for an annual rate of 2.7%. Core inflation of 2.6% also surpassed expectations.
(END) Dow Jones Newswires
June 13, 2017 12:10 ET (16:10 GMT)