By Sara Sjolin, MarketWatch
LONDON (MarketWatch) -- European stock markets dropped on
Tuesday, taking a breather after climbing to multiyear highs in the
prior day's session.
The Stoxx Europe 600 index lost 0.3% to 308.79, retreating from
the highest closing level since June 2008, reached on Monday.
Shares of cruise-ship operator Carnival PLC (CCL) sank 14%,
after the firm late Monday slashed its full-year guidance, saying
ticket pricing has led to lower-than-expected revenue yields.
On a more upbeat note, shares of Marks & Spencer Group PLC
added 2.1%, after the retailer reported full-year pretax results in
line with expectations.
For the broader European stock markets, investors were looking
to the U.S., waiting for further hints of when and how the Federal
Reserve will start to taper off its aggressive easing program.
"Following last week's comments from the Federal Reserve
regional president, hinting that the Fed will soon start tapering
its bond-buying stimulus scheme, traders have been frantically
searching for further clues as to when this process may begin,"
said Max Cohen, financial sales trader at Spreadex, in a note.
"With Fed Chairman [Ben] Bernanke set to deliver his latest
congressional testimony tomorrow, investors are hoping that he may
reveal the timing of any wind-down," he added.
U.S. stocks ended lower on Monday, but stock futures pointed to
a higher open on Wall Street on Tuesday.
Back in Europe, car makers posted some of the biggest losses,
pausing after the prior day's rally when an upgrade from Morgan
Stanley sent the sector higher.
Shares of Daimler AG lost 2.4% in Frankfurt, Porsche Automobil
Holding SE slipped 1.3% and Volkswagen AG fell 1.5%.
The DAX 30 index lost 0.2% to 8,439.23, after closing at an
all-time high on Monday.
Deutsche Bank AG (DB) further added pressure in Germany, off
1.8% after J.P. Morgan Cazenove cut the bank to neutral from
overweight.
In France, Renault SA shaved off 2.5% and Peugeot SA fell
0.6%.
The CAC 40 index traded 0.2% lower at 4,016.94.
The U.K.'s FTSE 100 index added 0.1% to 6,761.29, with mining
firms on the rise. Rio Tinto PLC (RIO) gained 3.2% and Anglo
American PLC climbed 2.7%.
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