European stocks ended in the red on Tuesday after disappointing U.S. services data reignited worries about economic growth in the world's largest economy. The pan-European benchmark wobbled between small gains and losses for most of the day, after a mixed bag of corporate news, including a revenue warning from Ingenico Group SA and a takeover bid from Fresenius S.E.
U.S. stocks closed slightly higher Tuesday, with the tech-heavy Nasdaq logging a record close as investors digested a weak services-sector report, which might help convince the Federal Reserve to stay its hand as it considers raising interest rates. The prospect of lower rates for longer tends to be a negative for the currency, but a lower dollar is beneficial to multinational companies, making their exports relatively cheaper.
Asian shares were broadly higher on Wednesday, with the notable exception of Japan, which retreated amid a soaring yen. In Japan, the yen's rise also comes amid market speculation the Bank of Japan may not be able to act more decisively on further monetary easing at its policy meeting later this month, said Akira Moroga, a joint general manager in the market products division at Aozora Bank.
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