STOCK MARKET WATCH - Wednesday, 22 February 2012

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12. European Stocks Fall on Worse-Than-Expected PMI Data; TUI Drops

http://sfgate.bdc.bloomberg.wallst.com/SFChronicle/Story?docId=1376-LZS7YS6JIJUO01-5R3O19TNNFISK3SCFG2M0JUV3N

Feb. 22 (Bloomberg) -- European stocks retreated for a second day after a report showed services and manufacturing expansion in the euro area unexpectedly contracted in February. Asian stocks rose and U.S. index futures fell.

Straumann Holding AG, the world’s biggest maker of dental implants, fell the most in more than three years after full-year profit missed analysts’ estimates. TUI AG, Europe’s largest travel company, declined 6 percent as a stakeholder sold a 12.9- million block of shares. PSA Peugeot Citroen, Europe’s second- largest carmaker, surged 17 percent.

The Stoxx Europe 600 Index fell 0.8 percent to 264.71 at 11:17 a.m. in London. The gauge has still rallied 8.3 percent this year amid speculation that the euro area’s sovereign-debt crisis will be contained and as U.S. economic data exceeded forecasts. The MSCI Asia Pacific Index rose 0.1 percent and Standard & Poor’s 500 Index futures fell 0.1 percent.

“Given that Europe is still shrouded by the cloud of recession, a weak PMI -- though not rain on the parade -- will surely damp investor sentiment,” said Manish Singh, the London- based head of investment at Crossbridge Capital, which has more than $2 billion under management. “In particular, weak numbers from Germany indicate weak European demand and a weak growth prospect for the eurozone as a whole.”