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Market Update

European Markets Trade Down

European markets were lower Tuesday as sentiment turned weak after worse-than-expected German data and also after enterprise software major SAP AG provided a weak outlook, hitting tech stocks.

The FTSE edged down 0.2%. The CAC 40 Paris fell 0.6% while the DAX was down 0.5%.

Earlier, the ZEW Centre for Economic Research said its index of German economic sentiment fell unexpectedly by 2.7 points to 27.1 in July from June’s 29.8. Analysts had expected a decline of 1.8 points to 28.0.

The Current Conditions index also slipped to 61.8 from 67.7, worse than expectations for a reading of 67.0.

In the U.K., data showed consumer price inflation accelerated more than expected in June, hitting its highest level since January. Consumer price inflation rose at a seasonally adjusted 1.9% in June, up from 1.5% in May.

Stocks on the Move

Shire PLC fell 1.3%. The company yesterday accepted an increased bid of 31 billion pounds from AbbVie Inc. on Monday.

German enterprise software specialist SAP AG fell 1.1% as it lowered its 2014 sales outlook.

Other tech stocks were also lower. Cap Gemini SA fell 2.4% while Atos SE was down 0.6%. Thales SA gave up about half a percent. Infineon Tech AG traded flat.

Elsewhere, Swedish bearings major SKF was up 1.1% after reporting a rise in second quarter earnings in line with market hope and said it expected demand would remain relatively unchanged in the third quarter.