European stocks were trading lower on Tuesday as a planned €4.1bn private equity takeover of drugmaker Stada proved unsuccessful and General Motors lowered its outlook for U.S. new vehicle sales in 2017.
Regional markets recouped some early losses after the Bank of England released its latest financial stability report and said banks have to raise their capital requirements to cover potential losses in the event of a financial downturn.
Meanwhile, ECB President Mario Draghi said in a speech at a conference in Sintra, Portugal, that a considerable degree of monetary accommodation is still required for underlying inflation pressures to build up.
Investors also looked ahead to Federal Reserve Chair Janet Yellen’s speech later in the day for additional clues on whether the U.S. central bank will hike rates going forward.
The pan-European Stoxx Europe 600 index was down 2 points or 0.45 percent at 387.30 after rising 0.4 percent the previous day.
The German DAX was moving down 0.4 percent and France’s CAC 40 index was losing half a percent while the U.K.’s FTSE 100 was little changed with a negative bias.
Stada tumbled 3.5 percent after private equity groups Bain Capital and Cinven failed to secure enough shareholder acceptances to take over the German generic drugmaker.
Deutsche Telekom lost 2 percent on a Wall Street Journal report that U.S. wireless carrier Sprint is in exclusive talks with Charter Communications and Comcast on a potential wireless-services deal.
French automaker Peugeot shed 1.5 percent while rivals Renault and BMW slid around half a percent after General Motors said it expects industry vehicle sales to fall short of its original forecast for the year.
Department store Debenhams tumbled 3.5 percent in London after it reported falling sales in the 15 weeks to 17 June amid volatile trading, sparking fears about a slowdown in consumer spending.
Marks & Spencer Group lost over 2 percent while Next Plc slid half a percent. However, floor coverings…