EU STOCKS slip ahead of Fed meeting

European stock markets moved cautiously lower on Tuesday, as investors remained wary ahead of the U.S. Federal Reserve’s policy meeting, on fears it could signal a potential slowdown in the bank’s asset purchases.

The Stoxx Europe 600 index dropped 0.1% to close at 293.02 after swinging between small gains and losses for most of the day.

G8 leaders, who hold a two-day summit in Enniskillen in North Ireland this week, call Eurozone countries to increase efforts to form a banking union in the area.

The G8 emphasized the importance of the process of building the banking union acceleration and generally of propping up the Eurozone economy. The officials insisted that it was necessary to continue implementing reforms as the area still remains in recession, even though the impact of the crisis has been waning.

The outlook for the global economy is concerned, the G8 agreed that it remains weak.

European Central Bank President Mario Draghi, speaking at a conference in Jerusalem, Israel on Tuesday, said the central bank will use interest rates and non-standard measures if it needs to help fix the troubled euro-zone economy.

Among notable movers in the pan-European index, shares of Danske Bank AS posted one of the biggest losses in the index, off 6.1%, after the Danish Financial Supervisory Authority ordered the bank to adjust its internal rating model, saying the lender underestimated its risky assets.

On a more upbeat note, shares of Whitbread PLC gained 3.6% after the hotel and restaurant operator reported a 13.8% rise in total sales, as cold weather boosted sales at coffee shops.

Shares of Kabel Deutschland Holdings AG climbed 3.7% after the firm confirmed late Monday it has received a preliminary takeover proposal from Liberty Global PLC.

Link>>