European shares edged down on Wednesday after three days of gains as signs of a slowing Chinese economy and rising worries about Ukraine offset reassuring European economic data.
After racing higher on Tuesday on a wave of takeover activity, European stocks fell 0.3 percent as investors locked in some of the gains and turned their attention to the region's broader economic outlook.
U.S. stock futures also pointed to a subdued start for Wall Streeton a heavy day of company earnings as well as U.S. PMI readings.
The PMI readings for Europe showed that France's economy was still lagging, but Germany continued to power the euro zone's recovery. [ID:nL9N0MI019] Europe's private sector has started the second quarter on its strongest footing in nearly three years, according to the PMIs, although new orders were again mainly buoyed by price cuts.
"It's pretty encouraging considering what we have seen for years. We are looking at 0.5 percent quarter-on-quarter GDP growth if we continue to see this level," said Chris Williamson, chief economist at Markit, which compiles the PMIs.
"Clearly we should see the pace of growth continue into May and possibly June as well. Companies are beginning to feel this is something sustainable."
The data lifted the euroand the region's government bonds [GVD/EUR], but after a 3 percent rise in the last two days some stock market investors decided to in their gains.
London's FTSE <.FTSE> dipped 0.1 percent, but a 0.4 percent drop by Paris's CAC 40 <.FCHI> and 0.3 percent declines in Frankfurt <.GDAXI> and Milan <.FTMIB> were the biggest drag on the pan-European FTSEurofirst 300. [.EU]
Mixed earnings were also a factor. Swedish mobile telecom equipment maker Ericssonfell almost 5 percent after it missed targets. So far this reporting season, 53 percent of companies have beaten or met expectations, compared with 58 percent in Q4 2013.
Source: Reuters
After racing higher on Tuesday on a wave of takeover activity, European stocks fell 0.3 percent as investors locked in some of the gains and turned their attention to the region's broader economic outlook.
U.S. stock futures also pointed to a subdued start for Wall Street
The PMI readings for Europe showed that France's economy was still lagging, but Germany continued to power the euro zone's recovery. [ID:nL9N0MI019] Europe's private sector has started the second quarter on its strongest footing in nearly three years, according to the PMIs, although new orders were again mainly buoyed by price cuts.
"It's pretty encouraging considering what we have seen for years. We are looking at 0.5 percent quarter-on-quarter GDP growth if we continue to see this level," said Chris Williamson, chief economist at Markit, which compiles the PMIs.
"Clearly we should see the pace of growth continue into May and possibly June as well. Companies are beginning to feel this is something sustainable."
The data lifted the euro
London's FTSE <.FTSE> dipped 0.1 percent, but a 0.4 percent drop by Paris's CAC 40 <.FCHI> and 0.3 percent declines in Frankfurt <.GDAXI> and Milan <.FTMIB> were the biggest drag on the pan-European FTSEurofirst 300. [.EU]
Mixed earnings were also a factor. Swedish mobile telecom equipment maker Ericsson
