Europe Stocks Little Changed as China Export Growth Slows

Stocks in Europe were little changed after three weeks of losses, as China's export growth tumbled to a 10-month low while Japan's economy expanded more than initially estimated. U.S. index futures and Asian shares gained.

Severn Trent Plc, the U.K.'s second-largest publicly traded water company, retreated the most in almost a year after rejecting a takeover offer. Anglo American Plc and Rio Tinto Group led mining companies lower as copper fell for a third day in London trading. Man Group Plc, the world's biggest publicly traded hedge-fund manager, rebounded from last week's slide.

The Stoxx Europe 600 Index rose 0.1 percent to 295.78 at 10:04 a.m. in London as three shares advanced for every two that fell. Standard & Poor's 500 Index futures added 0.4 percent after the U.S. gauge jumped the most since April on June 7 as payrolls topped projections. The MSCI Asia Pacific Index gained 1.3 percent as Japan's Topix (TPX) jumped 5.2 percent.

"Despite a strong finish on Wall Street after better-than-expected job numbers and an upward revision to Japanese growth numbers, European markets are struggling in early trade due largely to a perceived further Chinese economic slowdown," Richard Hunter, head of equities at Hargreaves Lansdown Plc in London, wrote in an e-mail. "Markets are beginning to question what the next positive catalyst might be."

The Stoxx 600 has retreated 4.8 percent since May 22 amid speculation the Federal Reserve will reduce its bond-buying program as the U.S. economy strengthens. Reports in America this week may show retail sales climbed in May and business inventories increased in April, according to Bloomberg surveys of economists.

Chinese Trade

China's export growth plummeted to a 10-month low in May and imports unexpectedly fell as a crackdown on fake trade invoices exposed weakness in global demand. Overseas sales rose 1 percent from a year earlier, the General Administration of Customs said on June 8, trailing 35 of 38 analysts' estimates in a Bloomberg survey and down from April's 14.7 percent pace. Imports dropped 0.3 percent.

In Japan, gross domestic product expanded an annualized 4.1 percent in the first quarter, compared with a preliminary calculation of 3.5 percent, the Cabinet Office said in Tokyo today. Consumer confidence climbed to the highest level since 2007 in May, separate data showed.

The number of shares changing hands in Stoxx 600 companies was 18 percent less than the 30-day average today, according to data compiled by Bloomberg.

Severn Trent

Severn Trent slid 5.3 percent to 1,960 pence, the largest decline since June 20, 2012. Borealis Infrastructure Management Inc. and its partners in the LongRiver group abandoned a 5.3 billion-pound ($8.2 billion) offer for Severn Trent after the U.K. water utility declined to negotiate.

"The Severn Trent board has shown no interest in discussing our pre-conditional offer with us," Borealis Chief Executive Officer Michael Rolland said in a statement today. "In the absence of any such engagement, there will be no further proposal from the consortium."

Anglo American and Rio Tinto Group retreated 3.3 percent to 1,415 pence and 2.8 percent to 2,730.5 pence, respectively, as a gauge of basic-resources companies fell the most among the 19 industry groups in the Stoxx 600. Antofagasta Plc (ANTO), the Chilean copper producer, slipped 1.8 percent to 905 pence.

Copper for delivery in three months on the London Metal Exchange slid as much as 1.4 percent to $7,130 a metric ton.

Man Group advanced 2 percent to 96.8 pence after the hedge-fund manager plunged 18 percent last week.

ITV Plc rose 4.6 percent to 135.3 pence, the biggest gain since February. Liberum Capital upgraded its price estimate on the U.K. broadcaster's shares to 200 pence from 155 pence, citing "structurally resilient" free-to-air television advertisements and forecast growth in online and content revenue.