European stocks drop from seven-year high as energy shares fall
By Bloomberg
European stocks fell from a seven-year high as energy shares declined.
The Stoxx Europe 600 Index slipped 0.2 percent to 379.46 at 8:11 a.m. in London. Total SA and BG Group Plc dropped at least 1.3 percent as crude prices fell, sending a gauge of oil and gas shares to the worst performance among 19 Stoxx 600 industry groups. Pressure also increased for Greece to reach a deal with its creditors before its bailout agreement ends this month.
U.S. and French officials called on Greece to compromise and the European Central Bank granted the nation’s lenders a small increase in emergency funds. Euro-area creditors want Greece to extend terms of its current aid package linked to austerity. The country’s government is pushing against such measures, seeking a bridge program followed by a new accord.
The Stoxx 600 rose 0.9 percent on Wednesday on speculation for a Greek deal after an official said its government will submit a request on Thursday for a six-month loan extension. The gauge has surged 11 percent this year as the ECB announced quantitative easing last month.
The central bank will publish on Thursday a summary of its monetary-policy meeting for the first time. The document will cover the Jan. 22 deliberations behind its decision to start buying government bonds.
Earnings Fall
BAE Systems Plc is among stocks moving on corporate news. Europe’s largest defense company declined 3 percent after saying full-year earnings fell 12 percent. Centrica Plc tumbled 9.1 percent after cutting its dividend as it swung to a loss.
Rexam Plc rallied 4.3 percent as Ball Corp. offered to buy its rival beverage-can maker for 628 pence a share in cash and stock. The London-based company also reported 2014 pretax profit that beat analysts’ projections. Randstad Holding NV rose 4.9 percent after saying organic sales growth accelerated in January.
Swiss Re AG gained 1.4 percent after the world’s second- largest reinsurer said it will buy back shares for as much as 1 billion Swiss francs ($1.1 billion).
In the U.S., minutes from the Federal Reserve’s last meeting signaled officials’ willingness to keep interest rates near zero for longer, surprising investors betting that job gains would prompt an increase as early as June. Officials cited risks from a stronger dollar to the crisis in Greece. Futures on the Standard & Poor’s 500 Index lost 0.2 percent.
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