Europe Stocks decline for third day as TNT express, Adecco Slip
By Bloomberg
European stocks dropped for a third day as a report showed German business confidence fell for a fifth month. U.S. index futures and Asian stocks were little changed.
TNT Express NV fell the most in 20 months after dropping its 2015 profitability forecast. Adecco SA slipped 4.4 percent after saying Germany and France experienced weaker growth than normal this month. Royal Bank of Scotland Group Plc declined 1.5 percent after selling the shares of its U.S. subsidiary below the initial offer price. Merck KGaA and Rio Tinto Group climbed as brokerages recommended buying the shares.
The Stoxx Europe 600 Index retreated 0.2 percent to 341.22 at 9:05 a.m. in London, reversing an earlier gain of as much as 0.2 percent. The equity gauge slid 1.4 percent yesterday, the biggest loss since July 8, as health-care shares fell amid a U.S. government crackdown on tax-saving mergers, and as the Middle East conflict escalated.
The number of shares trading hands today in Stoxx 600- listed companies was 37 percent greater than the average of the past 30 days at this time of day, data compiled by Bloomberg showed. Standard & Poor's 500 Index futures rose 0.1 percent, and the MSCI Asia Pacific Index added 0.1 percent.
German business confidence declined in September to its lowest level in 17 months. The Ifo institute's business climate index, based on a survey of 7,000 executives, fell to 104.7 in September from 106.3 in August. Economists had predicted a drop to 105.8, according to the median projection.
Investors have also been examining U.S. data to gauge the strength of the world's largest economy amid signs of weaker growth in Europe. A Commerce Department report at 10 a.m. in Washington will probably show new-home sales rebounded in August following two months of declines, economists projected.