European Stocks End Three Day Advance as Deutsche Bank Retreats

Mar 20, 2017 1:03 pm ET

(Bloomberg) -- European stocks ended the session little changed after three days of gains, weighed down by declines in oil-and-gas shares and lenders.

The Stoxx Europe 600 Index fell 0.2 percent at the close. Energy firms posted the biggest losses, falling for the first time in four days and tracking crude prices lower. Deutsche Bank AG fell 3.7 percent to the lowest this year after saying it will raise 8 billion euros ($8.6 billion) by selling stock at a 35 percent discount to last week’s closing price.

  • The Stoxx 600 climbed last week, boosted by investor relief over the defeat of the populist party in the Dutch elections and the Federal Reserve’s decision to raise rates while maintaining its previous forecast for the pace for future increases.
  • Investors should be overweight equities versus bonds and credit, Credit Suisse Group AG strategists led by Andrew Garthwaite wrote in a note, saying that they now see less chance of a correction in stocks in the second half of the year.
  • Share buybacks in Europe, while rarer than in the U.S., work better, according to Morgan Stanley strategists. Stocks of companies that offer the program have yielded
    higher returns for investors in the region than in the U.S.
  • Among other shares active on corporate news, Hansteen Holdings Plc rose 1 percent after gaining as much as 7 percent earlier as a Blackstone Group LP and M7 Real Estate Ltd venture agreed to acquire its continental European properties.

--With assistance from Elena Popina

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