EUROPE MARKETS: Europe Stocks Hold Losses After German ZEW

By Sara Sjolin, MarketWatch

LONDON (MarketWatch) -- European stock markets were on track for a third straight day of losses on Tuesday, as concerns about global growth remained in the spotlight after Germany's ZEW index missed expectations.

The Stoxx Europe 600 index shed 0.3% to 289.56, adding to a 0.7% loss from Monday.

Among major decliners, shares of LVMH Moët Hennessy Louis Vuitton dropped 3.3% in Paris, after the luxury retailer posted sluggish sales growth at its main fashion and leather goods businesses.

On a more upbeat note, Danone SA climbed 3.8%, as the yogurt maker said sales in the Asia-Pacific, Latin America, Middle East and Africa regions offset weakness in the European market.

For the broader stock markets, investors focused on data coming out of Germany, where the ZEW economic sentiment indicator fell to a lower-than-expected 36.3 level in April from 46.5 a month earlier. The index, which measures investors' expectations for the coming six months, was forecast to fall to 43.0.

The disappointing report added to worries over recent macroeconomic data pointing to a slowdown in the global economic recovery. On Monday, China posted first-quarter gross-domestic-product growth below expectations and the New York Fed's Empire State index fell to the slowest reading since January.

Asia stocks closed lower on Tuesday, while U.S. stock futures pointed to a higher open on Wall Street.

Back in Europe, drug makers added pressure, pulling back after being among few sectors climbing into black territory on Monday. Shares of Novartis AG (NVS) gave up 1.6%, Roche Holding AG dropped 1.6% and GlaxoSmithKline PLC (GSK) slipped 1.4% in London.

The U.K.'s FTSE 100 index declined 0.6% to 6,306.13, further pressured by Associated British Foods PLC shaving off 2.6%, after Credit Suisse cut the firm to neutral from outperform.

Mining firms were mostly higher, recouping after a broad-based selloff the prior day triggered by weak Chinese data and large declines in metals prices. Fresnillo PLC gained 2.8%, Eurasian Natural Resources Corp. added 4.2% and Rio Tinto PLC (RIO) picked up 1.4%. Metals prices were mixed.

France's CAC 40 index gave up 0.7% to 3,685.03, while Germany's DAX 30 index lost 0.7% to 7,661.60.

Outside the major indexes, Akzo Nobel NV climbed 1.5%, after ING lifted the paints and coatings firm to buy from hold, citing the potential for "perfect tailwinds" in 2013 and 2014 to bring positive earnings surprises.

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