You are here

Europe: Stocks extend longest losing streak of '15 amid DAX rout

[ZURICH] A slump in German equities helped send European stocks down for a sixth day.

The Stoxx Europe 600 Index fell 0.4 per cent to 383.78 at 4:31 pm in London, earlier losing as much as 1.4 per cent. Germany's DAX Index declined 0.7 per cent after entering a correction on Monday. It's dropped 11 per cent from its April peak.

Stocks have fallen in past days as Greece struggles to strike a debt deal after months of talks. Creditors are growing increasingly frustrated with the country's government after it rejected the terms of an aid package again last week and deferred a payment due to the International Monetary Fund.

A European Union official said Greece's latest budget proposals fall short of the targets Prime Minister Alexis Tsipras agreed on with creditors last week.

"People are more focused about macro like Greece," said John Plassard, vice president at Mirabaud Securities LLP in Geneva. "We may come into a phase where we get a bit of a relief in this stressed market. The risk-reward is now more favorable for an entry point in the Europe equity market."

The Stoxx 600 is extending its lowest level since February and has lost 4.2 per cent in six days. A technical analysis signal shows the gauge is close to being oversold, with the relative strength index near 30. Last time it reached that level, in December, the index was about to start its biggest first-quarter rally since 1998.

Greece's ASE Index gained 0.6 per cent on Tuesday, rebounding from its lowest level since April 24. The Swiss Market Index dropped 0.8 per cent for one of the biggest declines among western-European markets.

Deutsche Telekom AG lost 2.7 per cent after a report that its chief executive officer isn't interested in a merger of T- Mobile US Inc with Dish Network Corp. Delhaize Group slipped 1.8 per cent and Royal Ahold NV retreated 2.3 per cent after De Telegraaf said deal talks are less successful than expected.

Deutsche Bank AG slid 2.5 per cent after saying its offices in Frankfurt were searched on Tuesday as part of an investigation into securities transactions by clients. HSBC Holdings Plc dropped 1 per cent after announcing job cuts and the sale of its operations in Turkey and Brazil.

Amadeus IT Holding SA fell 3.6 per cent after Banco Bilbao Vizcaya Argentaria SA cut its rating on the stock to the equivalent of a sell. Neopost SA dropped 3 per cent after reporting a decline in quarterly organic revenue.

Reed Elsevier Plc gained 1.3 per cent after Barclays Plc raised its rating to the equivalent of a buy. The brokerage said the stock offers growth value after falling this year.