By Barbara Kollmeyer
LONDON (MarketWatch) -- European stocks traded in tight ranges
on Wednesday as investors weighed earnings from companies such as
ASML Holding NV and Sage Group PLC and speculated whether
better-than-expected U.K. jobs data will trigger an interest-rate
hike.
The Stoxx Europe 600 index nudged down 0.1% to 335.61, wiping
out gains made earlier in the session.
Shares of ASML Holding (ASMLD) topped the gainers list, surging
7.5% after the Dutch semiconductor-equipment maker reiterated its
forecast for the first half of 2014 and posted a 62% rise in
fourth-quarter net profit.
Sage rose 4.8% as the business-software maker said trading
across all its regions remains in line with forecasts and it is on
course to deliver its 6% organic-revenue growth target in 2015.
On the downside, shares of ABB Ltd. fell 4.3% after the
power-and-technology company said fourth-quarter earnings will be
hit by around $260 million in costs linked to North Sea-power
projects and restructuring.
More broadly, investors digested a bigger-than-expected drop in
U.K. unemployment, which sparked fears the Bank of England could
raise interest rates earlier than previously anticipated. The
joblessness rate for the three months to November fell to 7.1%,
closing in on the central bank's threshold of 7% for considering
raising interest rates.
The central bank said, however, in minutes from its January
meeting -- also out on Wednesday -- that even if the 7%
unemployment threshold were to be reached in the near future, there
is no immediate need to raise the interest rate.
The U.K.'s FTSE 100 index traded 0.1% lower at 6,829.52.
Elsewhere in Europe, the German DAX 30 index slipped 0.1% to
9,721.49, and the French CAC 40 index shed 0.2% to 4,316.59.
Shares of Allianz SE fell 2% in Frankfurt in the wake of
Tuesday's news that Mohamed A. El-Erian will step down from the
role of chief executive officer for Pimco, a unit of Allianz, after
a year of big outflows for the asset manager's flagship fund. The
company said El-Erian will stay on the international executive
committee of Allianz and advise its board of management on global
economic and policy issues.
U.S. stock futures were pointing to a mixed start for Wall
Street, with plenty of earnings to keep investors busy.
International Business Machines Corp. (IBM) shares fell after
the company's fourth-quarter and full-year earnings outlooks,
announced after the closing bell, fell short of analysts estimates.
Wall Street stocks closed the day mostly higher, though earnings
misses dragged on the Dow industrials. (DJI) Also read: IBM
investors are weary of managed earnings.
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