By Carla Mozee, MarketWatch
LONDON (MarketWatch) -- Most European stocks slipped Friday, but
the regional equity benchmark remained poised for a weekly advance
after an improvement in U.S. economic conditions spurred buyers
back into action.
The Stoxx Europe 600 index lost grip of gains and shed 0.1% at
327.27, as mining stocks came off their highs and finance issues
weakened. Still, the benchmark was in line for a weekly rise of
1.6%, which would mark its first gain since the week ended Feb.
21.
The U.K.'s FTSE 100 index pared its advance to 3 points at
6,543.54. Underperforming the broader market, Burberry Group PLC
fell 2.6% after Bank of America Merrill Lynch downgraded its rating
of the luxury-goods company to neutral from buy.
Among other country-specific indexes, Germany's DAX 30 index
rose 0.2% to 9,312.61, and France's CAC 40 index was lifted by 0.1%
to 4,330.45. Shares of Bouygues SA fell 0.9% after the French
company on Thursday raised the cash portion of its offer to acquire
SFR, Vivendi SA's mobile unit.
European stocks had built on a modest rise at the end of
Thursday's session. In that session, the index was firmly lower
until U.S. stocks reversed their losses, in part on a report
showing a bounce-back in the Philadelphia-area manufacturing
sector. Asian stocks overnight followed up with gains for major
indexes. U.S. stocks had opened higher, but had also briefly fell
into the red.
This week, stocks came under pressure after U.S. Federal Reserve
Chairwoman Janet Yellen, in her first news conference at the helm
of the central bank, indicated that an interest-rate hike may
arrive earlier than expected in 2015.
Europe's Spring election season will begin this weekend, with
the first round of municipal elections in France, noted Win Thin,
head of emerging market currency strategy at BBH.
"Although the Socialists may hold on to Paris, the risk is that
the Prime Minister's party is soundly trounced this weekend," wrote
Thin. "Many will watch how Le Pen's National Front does, which is
running around twice the candidates they did in the last municipal
elections, as it gears up for the EU parliamentary elections in
May." (Read more about the coming election in France
http://www.marketwatch.com/story/french-vote-could-show-rise-in-anti-euro-feelings-2014-03-21.).
In Russia, the MICEX Index dropped 1.2% after the U.S. imposed
sanctions on four influential Russian businessmen and a bank,
saying the penalties could apply to anyone who "has acted for or on
behalf of, or that has provided material or other support, to a
senior Russian government official." U.S. President Barack Obama on
Thursday said the country was preparing broader sanctions should
Russia take further steps into Ukraine.
Meanwhile, European Union leaders on Thursday agreed to asset
freezes and visa bans on 12 more Russian officials, but sidestepped
penalizing powerful oligarchs or companies.
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