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European stocks slip amid poor eurozone data

London - Europe's main stock markets fell on Wednesday as investors took profits from recent gains and digested downbeat industrial production data in the eurozone, dealers said.

Asian equities also turned mixed following the previous day's healthy gains, as profit-taking offset another record overnight Wall Street performance.

London's benchmark FTSE 100 index dipped 0.14% to stand at 6 863.40 points just after midday, despite upbeat unemployment data and a growth forecast upgrade from the Bank of England.

Frankfurt's DAX 30 slid 0.16% to 9 738.31 points, dented partly by poor RWE results, and in Paris the CAC 40 lost 0.16% to 4 497.80 compared with Tuesday's closing values.

"I think we're seeing a little profit taking today. The eurozone data has perhaps encouraged it," said Alpari trader Craig Erlam.

He added: "The FTSE, while still trading lower on the day, is doing slightly better than its other European counterparts so it is benefitting from the jobs report."

Britain's unemployment rate dropped to a five-year low point of 6.8% in the three months to March, as the economic recovery gathers strength.

Elsewhere, eurozone industrial output fell in March, official data showed, consistent with recent data showing the economic recovery to be patchy so far.

Industrial output in the 18-nation eurozone slid 0.3% in March compared with February when it gained 0.2%, the Eurostat statistics agency said.

Compared with March 2013, eurozone industrial output was down 0.1%, after posting a year-on-year gain of 1.7% in February.

"Eurozone data today confirmed the picture of very subdued inflation which make it increasingly likely that the European Central Bank will ease its monetary policy stance in June," added Rebecca O'Keeffe, head of investment at stockbroker Interactive Investor.

"This should provide support for European equities going forward, but until words turn into action, investors are likely to be more cautious and may well take the opportunity to bank profits."

The London stock market was hit by a high number of UK companies going ex-dividend, meaning their stock no longer carries the right to recently declared dividends.

The top faller however was British commercial broadcaster ITV, whose share price slumped 5.71% to 180.1 pence after a weak earnings update.

On the upside, shares in Compass rallied 3.31% to 1 013 pence after the British catering firm said Wednesday it will return £1.0bn to shareholders via a special dividend.

The group also ramped up its interim shareholder dividend by 10% to 8.8 pence per share.

In Frankfurt, RWE was the heaviest faller after Germany's second-biggest power supplier cut its full-year forecasts and posted tumbling first-quarter profits.

Net profit fell 35.5% to €838m in the period from January to March.

In rection, RWE's share price sank 2.12 percent to €27.03.

In foreign exchange deals, the euro rose to $1.3718 from $1.3701 late in New York on Tuesday.

Sterling steadied against the euro and the dollar as dealers concluded that the Bank of England (BoE) was in no hurry to raise British interest rates, dealers said.

The BoE raised its 2015 growth forecast to 2.9% on Wednesday, adding that the economy was heading "back to normal" as the recovery picks up speed.

The European single currency rose to 81.47 pence from 81.43 pence on Tuesday, while the British pound increased to $1.6835 from $1.6823.

The price of gold advanced to $1 301.71 an ounce on the London Bullion Market from $1 296.50 on Tuesday.

Wall Street forged record closing highs for the second day in a row on Tuesday, despite concern about overvalued technology stocks.

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