European stocks fell for a fourth straight week as mounting -sovereign-debt concern in Greece and Italy and the worst election defeat for Spain’s ruling Socialist Party in 30 years weighed on investor sentiment.
The STOXX Europe 600 Index declined 0.2 percent to 279.05 this past week as national benchmarks in every west European country except Spain and Norway retreated. The benchmark gauge has fallen 1.7 percent so far this month as commodity producers tumbled with metal and oil prices and Greek 10-year bond yields soared to a record as rating firms downgraded the nation’s credit rating.
“Near term, the outlook is tricky given leading indicators are rolling over, ongoing concerns over euro-zone sovereign debt and a gap in the corporate newsflow,” said London-based UBS AG equity strategist Nick Nelson, in a report to clients dated Tuesday. “However, we stick to our year-end target of 310 for the STOXX 600.”