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The longest winning stretch in 14 years looked set to end on Monday as European stocks slipped.
The Stoxx Europe 600
SXXP,
was trading 0.5% lower in midday action, after having closed higher for 10 consecutive trading days. The European index had not registered that achievement since a run that ended on Dec. 15, 2006.
That said, the index has edged up just 3% during this 10-day stretch. It’s up 19% this year.
Of the major regional indexes, the German DAX
DAX,
declined 0.4%, the French CAC 40
PX1,
declined 0.8% and the U.K. FTSE 100
UKX,
slumped 1.1%.
The European stock decline came after China released disappointing economic data. That put pressure on luxury-goods makers including Kering
KER,
and miners including Rio Tinto
RIO,
Faurecia
EO,
was a rare gainer, jumping 9% after its €6.7 billion deal for rival Hella
HLE,
which fell over 3%.
Faurecia will first buy a 60% stake from Hella’s majority owners, and then tender for the remainder.
“With no minimum acceptance threshold set and Faurecia acquiring the voting majority from the owning family, we expect that neither Faurecia will raise its offer nor that another bidder will make a higher one,” said analysts at Stifel led by Alexander Wahl. The offer values Hella at 12 times enterprise value-to-EBITDA, they said.
