By Sara Sjolin, MarketWatch
LONDON (MarketWatch) -- European stock markets moved lower on
Wednesday, with investors remaining cautious ahead of minutes from
the U.S. Federal Reserve's latest meeting, which could shed more
light on a potential tapering of asset purchases.
The Stoxx Europe 600 index lost 0.4% to 301.19, after closing at
the lowest level since late July on Tuesday.
Shares of Heineken NV slumped 2.9% after the brewer reported a
17% drop in first-half earnings per share, saying it has suffered
from bad weather and weak demand in several markets in the Northern
Hemisphere.
Rival brewer Carlsberg AS rose 0.4% even as it reported a 36%
fall in second-quarter net profit.
On a more upbeat note, shares of Veolia Environnement SA climbed
6.2% after Morgan Stanley lifted the firm to overweight from equal
weight.
More broadly, investors were awaiting the much-anticipated
minutes from the U.S. Federal Open Market Committee's July meeting,
which they hope will reveal the central bankers' view on a
potential tapering of asset purchases. The Fed currently buys bonds
worth $85 billion a month, but there have been signs it could start
reducing those purchases as soon as September if the U.S. economy
continues to improve.
"The statement from the July meeting was slightly more dovish on
the inflation outlook, so it will be interesting to see what caused
the change in tone. According to the June minutes half of the FOMC
members preferred to end the QE program this year. It will also be
interesting to see if this has changed," analysts at Danske Bank
said in a note.
Worries over imminent tapering spooked the markets earlier in
the week, with the yield on 10-year U.S. Treasury notes (10_YEAR)
rising to the highest level in two years on Monday.
U.S. stock future pointed to a lower open on Wall Street.
Back in Europe, most country-specific indexes were on the
decline. The FTSE 100 index dropped 0.6% to 6,416.82, while
Germany's DAX 30 index fell 0.2% to 8,285.23. France's CAC 40 index
slipped 0.1% to 4,025.79.
Shares of GDF Suez SA lost 0.9% in Paris after HSBC cut the
utility firm to neutral from overweight.
Standard Life PLC added 2% in London after Credit Suisse lifted
the insurance firm to neutral from underperform.
Hikma Pharmaceuticals PLC put on 2.4% after the company said
first-half revenue climbed 20% and raised its full-year guidance to
around 20% revenue growth.
Outside the major indexes, shares of Vestas Wind Systems AS
climbed 4.6% after the wind-turbine maker appointed Anders Runevad
as new chief executive instead of Ditlev Engel. The company also
said its two-year turnaround continues according to plan.
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