European stocks decline amid focus on Greece, central banks
By Bloomberg
European stocks fell as investors shifted their focus to central banks and weighed whether the Greek parliament will pass the reforms necessary for a new bailout.
Oil stocks declined as Iran was said to reach a deal with world powers over its nuclear program, fanning speculation that it will increase crude shipments into an already oversupplied market. Subsea 7 SA dropped 3.1 percent and SBM Offshore NV slid 2.4 percent.
The Stoxx Europe 600 Index lost 0.4 percent to 395 at 9:15 a.m. in London. Shares on Monday capped their biggest four-day rally since 2011 as Greece and its creditors reached an agreement paving the way for a new bailout. Banks contributed the most to the gains as all industry groups advanced.
As Greek Prime Minister Alexis Tsipras attempts to push reforms demanded by creditors through parliament, investors will refocus on economic developments.
The European Central Bank meets Thursday. The bank has said it will maintain its unprecedented stimulus at least until September next year to fight off deflationary risks in the euro area and bolster growth.
Investors will also parse comments by Federal Reserve Chair Janet Yellen, who testifies before the U.S. Congress this week, for clues on the timing of any rate increases.
A gauge of auto-related companies posted the worst performance of the 19 industry groups on the Stoxx 600. BMW AG dropped 1.2 percent after its Chinese joint-venture partner forecast first-half net income to fall about 40 percent amid slowing demand for premium cars in the world’s largest auto market. PSA Peugeot Citroen slipped 2.6 percent and Volkswagen AG lost 2.1 percent.
Skandinaviska Enskilda Banken AB fell 2 percent after posting second-quarter net interest income that missed analysts’ estimates.
ITV Plc retreated 1.3 percent after Deutsche Bank AG cut its rating on the media company to sell, citing competition concerns.
Kuehne & Nagel International AG rose 3.1 percent after the sea-freight forwarder posted higher-than-expected second-quarter earnings.
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