European Stocks Decline as Roche Tumbles on Disappointing Data

European Stocks Extend Declines for a Second Day

Roche Holding AG led European stocks lower after the Swiss pharmaceutical company unveiled data on the Aphinity breast-cancer study that disappointed analysts.

The Stoxx Europe 600 Index lost 0.7 percent at the close. Roche’s 5.5 percent plunge contributed the most to the decline. The benchmark fell 0.1 percent on Monday with thin volume as regional markets including Germany and Switzerland closed for a public holiday. The 600-member index still is 7.7 percent ahead for the year, helped by a drop in perceived political risk, improving economic growth, a rebound in corporate profits and relatively low bond yields.

  • Switzerland’s SMI Index dropped 1.5 percent.
  • The FTSE 100 ended the session little changed, after gaining ground in past few weeks as the pound weakened in the run-up to the U.K. election. For an equity guide to a Labour victory, click here; for an equity guide to a Tory victory, click here.
    • Key risk scenario is majority of less than 50 seats, or minority government for Tories, potentially affecting shares from BP Plc to Easyjet Plc, according to Deutsche Bank AG equity strategists led by Wolf von Rotberg.
  • Even after strong gains made so far this year, the Stoxx 600 trades at an estimated dividend yield of about 3.4 percent, keeping its members relatively attractive compared with government bonds, and offering the highest dividend yields among the major regions.
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