Europe open: Stocks slip as investors pause after recent gains
European stocks slipped in early trade as investors paused for breath following five consecutive days of gains.
At 0910 GMT, the benchmark Stoxx Europe 600 index was down 0.6%, France’s CAC 40 was off 0.5% and Germany’s DAX was down 0.3%.
At the same time, oil prices were in the red, with West Texas Intermediate down 0.5% to $34.50 a barrel and Brent crude down 0.9% at $36.60.
“As the recent bounce may be running out of steam investors will be monitoring the release of this morning's Services PMI data looking for signs of economic recovery across Europe while the US jobs data tomorrow may well be a key driver as we head towards the weekend,” said Andy McLevey, head of dealing at Interactive Investor.
In corporate news, BHP Billiton was in the black after its part-owned Brazilian mining venture Samarco agreed a B$30bn ($8bn or £5.5bn) program of compensation and clean-up from the bursting of a mine tailings dam last November.
Steelmaker ArcelorMittal was higher after its chief executive officer told Les Echos the company was not planning to cut its French production.
Insurer Admiral rallied after posting a 6% rise in 2015 pre-tax profit and lifting its dividend target.
On the downside, sportswear maker Adidas was weaker after reporting a slightly bigger than expected net loss for the quarter.
Evonik Industries shares tanked after the chemical maker issue a weaker-than-expected profit outlook.
Satellite communications provider Inmarsat slid after posting a drop in full year profit amid weak global government spending.
On the data front, Markit’s final Eurozone composite purchasing managers’ index for February fell to 53.0, which was above the flash estimate of 52.7 and January's 53.6 but marked the lowest reading since January last year.
February saw a broad-based slowdown of the Eurozone private sector economy. Rates of output expansion eased across Germany, Italy, Spain and Ireland, while France fell back into contraction for the first time in 13 months. Price pressures also remained on the downside, with modest reductions registered for both output charges and input costs.
The services PMI, meanwhile, came in at 53.3, up from the flash estimate of 53 but below January’s 53.6.
Still to come, investors will eye a raft of data from the US. Initial jobless claims are at 1330 GMT, while the Markit services PMI is at 1445 GMT. ISM non-manufacturing, factory orders and durable goods orders are all due at 1500 GMT.