Azernews.Az

By Bloomberg

European stocks declined, paring a weekly gain, as miners and automakers retreated.

Daimler AG fell 2.4 percent. A gauge of commodity producers posted the biggest decline of the 19 industry groups on the Stoxx Europe 600 Index as Societe Generale SA said iron ore prices may extend losses. BHP Billiton Ltd. slid 2.1 percent.

The Stoxx Europe 600 Index slipped 0.2 percent to 397.74 at 10:19 a.m. in London, paring its weekly gain to 0.6 percent. The equity gauge has jumped 16 percent this year amid optimism stimulus from the European Central Bank will revive the region’s economy, while a weakening euro will boost profits. The rally propelled valuations to the highest in at least a decade last month.

“Everything looks expensive and we’re probably due a pullback soon,” said Ros Price, the chief investment strategist at Seven Investment Management in London. “Central banks have made asset prices go up -- let’s see what they can really to do the economy. I’d say watch things carefully in April and be prepared. Yes, Europe’s recovery is picking up, but it’s still very fragile.”

Markets in Denmark, Iceland and Norway are shut today, while Sweden is open for a half day. All European bourses are closed for holidays Friday and Monday.

The ECB publishes the minutes of its March 4-5 meeting today. Investors will be looking for further indications of policy makers’ thinking after the introduction of quantitative- easing measures.

U.S. Data

Traders are also watching U.S. economic reports, after the Federal Reserve said the timing of its first interest rate increase since 2006 will be data-dependent. Releases on jobless claims and factory orders are due today. Friday’s monthly payrolls report, which is projected to show an increase of 245,000 workers, will also be in focus.

Deutsche Lufthansa AG slipped 2.7 percent after Barclays Plc cut its recommendation on the airline to equal weight, similar to hold, from overweight.

Among other stocks moving on corporate news, Marks & Spencer Group Plc added 5.5 percent after saying sales at its general-merchandise unit rose for the first time since 2011. Royal KPN NV climbed 1.5 percent after saying it received interest from several parties about the acquisition of its Belgian mobile-phone business Base.