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Sep 6, 2016

European Market News - September 6, 2016: European Stocks Waver as Fresenius Rallies, But Ingenico slumps 12%

Sara Sjolin
European stocks struggled for direction on Tuesday after a mixed bag of corporate news, including a revenue warning from Ingenico Group SA and a takeover bid from Fresenius SE.

The Stoxx Europe 600 index SXXP, +0.05%  rose 0.15 points to 350.77, mirroring Monday’s muted action, when the pan-European benchmark ended 0.1% higher.
“Lacking the PMI focus of the last few sessions, the European indices don’t really have much to contend with this Tuesday morning,” said Connor Campbell, financial analyst at Spreadex in a note.
In previous sessions, traders been monitoring the final purchasing managers’ indexes for the eurozone and the U.K., which showed the services and manufacturing sectors continued to expand in August. In particular, the U.K.’s services PMI for August was a big surprise, logging its largest monthly gain in two decades on Monday.
Movers: Shares of Fresenius SE & Co. FRE, +4.23%  rose to the top of the Stoxx 600 on Tuesday, up 4% after the German health-care group said late Monday it will take over Spanish hospital operator Quironsalud in a deal valued at 5.76 billion euros ($6.42 billion).
Why is the Toyota Prius struggling in the U.S.?
Toyota's latest Prius hybrid is the top selling car in Japan. But in the U.S., the company's biggest market, Prius sales are falling because of low gas prices. Photo: Toyota Motor
Berkeley Group Holdings PLC BKG, +3.35%  climbed 3.6% after the house builder said activity was back to pre-Brexit levels.
On a more downbeat note, Ingenico Group ING, -13.65%  plunged 12% after the electronic-payments company issued a revenue warning due to a “rapid and temporary” weakness in the U.S. and persistent difficult economic conditions in Brazil.
Outside the main European index, Arcam AB ARCM, +53.23%  soared 53% and SLM Solutions Group AG AM3D, +37.64%  jumped 36%, after General Electric Co. GE, +0.29%  said it will buy the two 3-D printing companies for a combined $1.4 billion.
Aegon NV AGN, -2.17%  gave up 2.2% after the Dutch financial-services company said its chief financial officer Darryl Button is stepping down to return to the U.S. with his family.
Indexes: The U.K.’s FTSE 100 index UKX, -0.22%  fell 0.2% to 6,866.62, with exporters pressured by a rally in the pound. Sterling GBPUSD, +0.2255%  rose to $1.3337, up from $1.3304 on Monday.
Germany’s DAX 30 index DAX, +0.27%  climbed 0.2% to 10,695.52, while France’s CAC 40 index PX1, +0.12%  rose 0.2% to 4,548.40.
Economic news: Manufacturing orders in Germany rose 0.2% in July, missing forecasts of a 0.6% gain.
The eurozone retail PMI climbed to a 10-month high in August, coming in at 51 to signal a modest rise in sales.
Economic growth in the eurozone for the second quarter was confirmed at 0.3%, in line with forecasts.