European stocks slip after 3-day winning streak

European stock markets closed lower on Wednesday, shrugging off strong eurozone data as concerns about the Chinese economy prompted traders to take profits after a three-day winning streak. London’s FTSE 100 fell 0.11 percent compared to Tuesday’s closing level to reach 6,674.74 points. Germany’s DAX 30 lost 0.58% to close at 9,544.19 points while the CAC-40 in Paris dropped 0.74% to 4,451.08 points. Official European Union data showed the average eurozone government deficit – the shortfall between revenue and spending – was 3.0% of output last year, in line with the EU ceiling and down from 3.7% in 2012. This, together with a strong eurozone purchasing managers index (PMI), was the latest indicator that the single-currency area is pulling well away from its debt crisis. Meanwhile France, seen to be a laggard in the process of reform to cut the public deficit and raise competitiveness, promised measures to correct public finances and boost growth and jobs. And Portugal breezed through a key bond market test, enjoying sharply lower borrowing costs in its first regular auction in three years weeks before it exits a 78-billion-euro, three-year rescue programme on May 17. Still the upbeat news wasn’t enough to sustain European shares, which broke a three-day winning streak to close lower after data showed China’s manufacturing contracted for the fourth straight month. “The successful auction of Portuguese 10-year debt... like the PMI readings, has been brushed off, with investors potentially paying more attention to the HSBC manufacturing reading for China,” said Craig Erlam, market analyst at traders Alpari. Markit Economics said its Eurozone Composite Purchasing Managers Index for April, a leading indicator of overall economic activity, jumped to 54 points from 53.1 in March, the highest reading since May 2011. Anything above 50 indicates growth, according to AFP.