Azernews.Az

By Bloomberg

European stocks fell for a sixth day as investors watched the latest news on Greece.

The Stoxx Europe 600 Index dropped 0.3 percent to 384.17 at 1:53 p.m. in London, paring losses of as much as 1.4 percent. Energy producers fell the most among industry groups. Mining shares slipped after data showed the inflation rate in China, the world’s biggest consumer of commodities, climbed at a slower pace in May.

“There were some bad figures on inflation from China, which gives us this mood a bit on red,” said John Plassard, vice president at Mirabaud Securities LLP in Geneva. “We may come into a phase where we get a bit of a relief in this stressed market. The risk-reward is now more favorable for an entry point in the Europe equity market.”

The Stoxx 600 is extending its lowest level since February and has lost 4.1 percent in six days. Germany’s DAX Index, down 0.8 percent on Tuesday, has entered a correction. It’s fallen 11 percent from its April peak.

A technical analysis signal shows the Stoxx 600 is close to being oversold, with the relative strength index near 30. Last time it reached that level, in December, the index was about to start its biggest first-quarter rally since 1998.

Stocks have fallen in past days as Greece struggles to strike a debt deal after months of talks. Creditors are growing increasingly frustrated with the country’s government after it rejected the terms of an aid package again last week and deferred a payment due to the International Monetary Fund. The Greek government submitted a new budget proposal to its creditors, two international officials with direct knowledge of the discussions said.

Greek Stocks

Greece’s ASE Index gained 1.8 percent on Tuesday, the most among western-European markets. It’s rebounding from its lowest level since April 24.

Stoxx 600 lenders declined, with Deutsche Bank AG sliding 3.1 percent after saying its offices in Frankfurt were searched on Tuesday as part of an investigation into securities transactions by clients. HSBC Holdings Plc dropped 1 percent after announcing job cuts and the sale of its operations in Turkey and Brazil.

Deutsche Telekom AG lost 2.1 percent after a report that its chief executive officer isn’t interested in a merger of T- Mobile US Inc. with Dish Network Corp. Delhaize Group slipped 1.3 percent and Royal Ahold NV retreated 2 percent after De Telegraaf said deal talks are less successful than expected.

Amadeus IT Holding SA fell 3.2 percent after Banco Bilbao Vizcaya Argentaria SA cut its rating on the stock to the equivalent of a sell. Neopost SA dropped 2.6 percent after reporting a decline in quarterly organic revenue.

Reed Elsevier Plc gained 2 percent after Barclays Plc raised its rating to the equivalent of a buy. The brokerage said the stock offers growth value after falling this year.