Yesterday's rally for the target Stoxx Europe 600 Index did not continue today. The European stocks recoiled while investors wait for news on UK's construction supply and US's factory orders. Consequently, US's index investments and Asian shares soared.
Fresenius Medical Care AG collapsed by 8.9%. Michelin & Cie. increased by 2.7% as soon as UBS AG proposed buying Europe's biggest tiremaker. Dialog Semiconductor Plc climbed by 3.8%. The upsurge happened after the German maker of chips settled a deal to buy IWatt Inc for US$345 million. Dialog Semiconductor Plc's chips were used in Apple Inc.'s iPhone.
The Stoxx 600 fell by 0.3% to 287.41 at 8:17 a.m. in London.
"Looking ahead to the European open, we are calling the major bourses weaker after having enjoyed solid gains yesterday," market strategist at IG Markets in Melbourne, Stan Shamu, noted. "We have William Dudley and Jerome Powell on the wires later today. This might cause some volatility for the greenback and in turn the risk space. Other releases to look out for will be factory orders and U.K. construction PMI."
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