EUROPE MARKETS: European Stocks Take A Step Back From Rally Mode

By Carla Mozee, MarketWatch

LONDON (MarketWatch) -- European stocks edged lower Tuesday, following a rally in the previous session as waves of money linked to European Central Bank's asset-buying program wash into markets.

The Stoxx Europe 600 fell 0.1% to 399.83, as industrials, consumer services and telecom shares pulled lower. The pan-European index on Monday (http://www.marketwatch.com/story/european-stocks-jump-with-germanys-dax-leaping-above-12000-2015-03-16) jumped 0.9% and marked its first close above the 400 mark since June 2007, according to FactSet data.

Germany's DAX dropped 0.4% to 12,117.79, slightly retreating from its 2.2% leap on Monday that pushed the index above 12,000 for the first time. Analysts have said the export-oriented market has benefited from a recent slide in the euro (EURUSD), as German goods become cheaper for overseas customers.

On Tuesday, investors will watch for the key German ZEW sentiment figure due at 10 a.m. London time, or 6 a.m. Eastern Time. Decliners in Frankfurt included Linde AG , whose shares fell 1.6% after Citi downgraded the industrial-gases producer to neutral from buy, citing valuation concerns.

Also due the same time are final eurozone inflation figures for February. On Monday, ECB Governor Mario Draghi said an economic recovery is taking hold in the currency bloc, thanks in part to the central bank's stimulus moves (http://www.marketwatch.com/story/ecb-president-draghi-says-eurozone-recovery-is-taking-hold-2015-03-17). Last week, the ECB began buying government bonds and other debt instruments under its quantitative-easing program.

France's CAC 40 was down 2 points at 5,059.47. The U.K.'s FTSE 100 gained 0.4% to 6,834.14 (http://www.marketwatch.com/story/sainsbury-bhp-guide-ftse-100-higher-but-antofagasta-falls-2015-03-17), with shares of J. Sainsbury PLC up 1%, following the supermarket chain's trading update.

Shares of Antofagasta fell 3.2% in London and were among the worst performers on the Stoxx 600. The move came after the copper miner's yearly net profit fell to $459.8 million (http://www.marketwatch.com/story/antofagasta-net-profit-falls-30-2015-03-17), missing expectations of $676 million from a FactSet poll of analysts.

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