ROME: European stocks declined as data showed euro-area output expanded at a slower pace in April, and Ericsson AB led technology shares lower.
The Stoxx Europe 600 Index lost 0.8 percent to 405.66 at 9:40 a.m. in London, having earlier risen as much as 0.4 percent. A Markit Economics report showed euro-area manufacturing and services missed forecasts, signaling it may take longer for a boost from the European Central Bank’s sovereign-bond purchases. Germany’s DAX Index and France’s CAC 40 Index slid more than 1 percent as similar data from those countries also disappointed.
“This serves as a gentle reminder that although Draghi is pumping money into the economy, it will take a bit of time to feed through,” said Ben Kumar, who helps oversee about $12 billion at Seven Investment Management in London. “If you’re an investor sitting on gains of 18 percent already this year, you’re probably quite happy to use this as a sign to take profits. Better to wait until we have real evidence of growth.”
