European stocks fell Tuesday, weighed down by losses for
pharmaceutical stocks.
The Stoxx Europe 600 was 0.5% lower in early trade. The index
had surged by 1% on Monday after a shake-up of Greece's team
negotiating with creditors was seen by investors as increasing the
chance of a deal on further financial aid for Athens.
In bond markets, the relief continued on Tuesday, with Greek
two-year bond yields falling slightly to 21.9%. Yields fall as
prices rise.
"The Greek government looks to be laying the ground for at least
some form of political compromise," said analysts at Rabobank.
But in equity markets the rally faded as Monday's steep decline
in highflying U.S. biotechnology stocks weighed on the sector in
Europe. Health care companies on the Stoxx 600 sank 1.6%.
Elsewhere, investors looked to earnings.
Energy shares shrugged off a fall in the oil price to climb 0.5%
following a smaller than expected decline in first quarter profit
for sector giant BP.
Daimler AG was among the top risers after posting strong first
quarter earnings.
Swiss engineering firm Geberit AG slipped after it said the
surging Swiss franc hurt its first quarter profit.
Germany's DAX index was 0.4% lower, France's CAC 40 lost 0.6%,
while the U.K.'s FTSE 100 was down 0.4%.
In currency markets, the dollar fell slightly. The euro was 0.1%
higher against the buck at $1.0890, while sterling rose 0.2% to
$1.5251.
In commodities, Brent crude was 1.1% lower at $64.12 a barrel.
Gold fell 0.2% to $1,200.20 an ounce.
Write to Tommy Stubbington at tommy.stubbington@wsj.com
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