ROME: European stocks posted their longest losing streak in three weeks as U.S. data and comments by Federal Reserve officials stoked concern of a rate increase.
The Stoxx Europe 600 Index lost 0.7 percent to 403.61 at the close of trading, reversing an advance of as much as 0.6 percent. Investors are also watching for developments in Greek bailout talks, with a payment due at the end of next week.
U.S. reports on capital-goods orders and new home sales in April, and consumer confidence in May all beat estimates. Fed Bank of Cleveland President Loretta Mester said yesterday the “time is near” for a U.S. rate increase, while Chair Janet Yellen indicated Friday that weak first-quarter growth won’t halt plans to raise borrowing costs this year.
“We have Greece to worry about, just as concerns regarding a rate hike heat up in the U.S.,” said Francois Savary, chief investment officer at Reyl & Cie. in Geneva. “That’s all contributing to a slightly more cautious market in the past few days as investors reassess their investment scenarios.”
