European stocks retreated from a six-year high as Credit Suisse Holdings AG led banks lower. U.S. stock-index futures rose and Asian shares were little changed.
Credit Suisse fell 2.1 percent as a person familiar with the matter said U.S. regulators are investigating its accounting practices. Jeronimo Martins SGPS SA dropped 6.3 percent after reporting 2013 net income that missed predictions. Anheuser-Busch InBev NV rose 1.6 percent after the brewer posted earnings growth that exceeded estimates and predicted improvements in its largest markets.
The Stoxx Europe 600 Index retreated 0.3 percent to 337.44 at 11:31 a.m. in London. The equity gauge has advanced 4.6 percent this month, on course for the largest monthly gain since July. It declined 1.8 percent in January. Standard & Poor’s 500 Index futures increased 0.2 percent, while the MSCI Asia Pacific Index fell 0.1 percent.
“There isn’t blind enthusiasm in the market like we had last year, and investors know there won’t be easy wins,” said Tobias Britsch, who helps oversee about $32 billion at Meriten Investment Management GmbH, in Dusseldorf, Germany. “We’re unlikely to see the market running again ahead of earnings. Valuations are not cheap and there may be a little nervousness pushing investors to be more conservative now. Improvements in economic growth and an earnings rebound still need to be proven before many are willing to pile in more aggressively.”
The number of shares changing hands in Stoxx 600-listed companies was 18 percent lower than the 30-day average, according to data compiled by Bloomberg based on volumes at this time of the day.
Equity Valuations
The Stoxx 600 trades at 14.5 times its members’ projected earnings, up from 13.7 times at the beginning of 2014, according to data compiled by Bloomberg.
A U.S. report at 10 a.m. in Washington will probably show sales of new homes declined for a third consecutive month in January. Purchases decreased 3.4 percent to a 400,000 annualized pace, according to the median economist projections compiled by Bloomberg before the Commerce Department releases the figures.
Credit Suisse slid 2.1 percent to 27.62 Swiss francs. The Securities and Exchange Commission is looking into whether the lender improperly moved money in its private-banking unit to conceal a drop in asset growth, the person said.
A gauge of banking stocks was among the worst performers of the 19 industry groups on the Stoxx 600. UBS AG, Switzerland’s largest bank, fell 1.1 percent to 18.19 francs. Barclays Plc, the U.K.’s second-biggest lender by assets, declined 1.5 percent to 254 pence.
Jeronimo Martins
Jeronimo Martins slipped 6.3 percent to 12.19 euros. The Portuguese retailer that gets most of its sales from Poland said net income rose 6 percent to 382 million euros ($525 million) in 2013. That missed the 386.8 million-euro average analyst projection compiled by Bloomberg.
Tesco Plc (TSCO) fell 4.2 percent to 321.1 pence as Oriel Securities Ltd. cut its rating on the U.K.’s largest retailer to hold from add. The brokerage said that Tesco failed to announce sufficient changes at yesterday’s investor day to reverse declining same-store sales.
Lanxess AG retreated 5.2 percent to 51.99 euros. The chemicals maker predicted it would report a net loss of 159 million euros for 2013 when it publishes final figures on March 20. The company took a charge of 257 million euros in the fourth quarter of 2013 because it produced more goods than it could sell and raw material and energy costs were high, according to a statement.
Utilities Decline
RWE AG fell 2.7 percent to 29.52 euros, its second-biggest loss this year. U.K. market regulator Ofgem said energy suppliers will have to comply with new rules from March 31, including having to publish prices at which companies will trade wholesale power as many as two years in advance. The German company generated more than 18 percent of its revenue in the U.K. in 2012, according to data compiled by Bloomberg.
A gauge of utility companies posted the second-worst performance on the Stoxx 600. EON SE declined 2.3 percent to 13.82 euros.
AB InBev (ABI) added 1.6 percent to 75.49 euros. Earnings before interest, taxes, amortization and depreciation, excluding some items, totaled $5.2 billion in the fourth quarter, the brewer of Budweiser beer said today in a statement. That beat the $5 billion median estimate of 11 analysts surveyed by Bloomberg. So-called organic growth of 13 percent exceeded projections for 10 percent.
Swiss Life Holding AG (SLHN) climbed 5.2 percent to 213.20 francs. The country’s largest life insurer raised its payout by 22 percent to 5.50 francs a share. Bloomberg calculations had projected no dividend change. Net income of 781 million francs ($881 million) for 2013 also exceeded analysts’ estimates as premium income rose as costs declined.
Ferrovial SA (FER) added 3.4 percent to 15.50 euros, its highest price since at least 2004, after reporting 2013 net income rose to 727.2 million euros from 691.7 million a year earlier. That exceeded the 586.9 million euros projected by analysts.
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