European Stocks Erase Gains After EU Cuts Growth Outlook

European stocks erased gains in midmorning action on Tuesday after the European Commission cut its 2014 growth forecast for the eurozone to 0.8% from 1.2%. The forecast was dragged lower by weaker-than-expected growth in major economies, including Germany, France and Italy. While the commission still sees growth in most countries, it expects Italy to fall back into recession this year. Italy's FTSE MIB index fell 0.2% to 19,332.46. France's CAC 40 index dropped 0.2% to 4,185.79, while Germany's DAX 30 index traded 0.2% higher at 9,265.59. The pan-European Stoxx Europe 600 index fell 0.1% to 334.09, after trading as high as 335.82 earlier in the day.