European stocks declined, paced by technology companies including STMicroelectronics NV and ASML Holding NV, after orders at North American companies that sell chip-making equipment declined for a fourth month in August. ``I just don't see any evidence or catalyst for how the tech sector can outperform in the one- to two-year horizon,'' said Bob Parker, vice chairman at Credit Suisse Asset Management, which oversees the equivalent of about $335 billion. The Dow Jones Stoxx 50 Index dropped 0.3 percent to 2686.14 as of 8:15 a.m. in London. The Euro Stoxx 50, a measure for the 12 countries using the euro, slipped 0.2 percent. The Stoxx 600 declined 0.2 percent, with all 18 industry groups declining except the basic resources sub-index.
STMicroelectronics, Europe's largest semiconductor maker, fell 1.6 percent to 14.58 euros. The stock was cut to ``sell'' from ``hold'' at Citigroup Inc. ASML, Europe's largest maker of semiconductor equipment, slid 1.6 percent to 11.09 euros. Infineon Technologies AG, Europe's second-largest chipmaker, declined 0.8 percent to 8.39 euros. Orders at North American companies that sell equipment used to make chips declined for a fourth month in August, according to Semiconductor Equipment & Materials International, a trade group. The book-to-bill ratio was 1.00 in August, indicating those companies got $100 in orders for every $100 in sales. That's down from an adjusted 1.04 in July. The ratio shows chip-equipment growth may be stalling, the industry group said.
Veolia Gains
Veolia Environnement SA, the world's biggest water company, added 0.6 percent to 23.08 euros after saying it returned to profit in the first half, helped by water and waste contracts and after it didn't repeat a writedown related to its U.S. Filter unit. Net income was 181.4 million euros ($221 million), compared with a net loss of 2.1 billion euros in the year-earlier period. Analysts surveyed by Bloomberg News predicted profit of 212 million euros on average. Crude oil rose for a second day on concern about the loss of production and possible damage from Hurricane Ivan, which passed just east of most Gulf of Mexico production platforms.
Crude oil for October delivery added 12 cents, or 0.3 percent, to $44 a barrel in after-hours electronic trading on the New York Mercantile Exchange. Oil has risen 2.9 percent this week. U.S. stocks gained after a measure of inflation rose less than expected, reassuring investors that the Federal Reserve will stick to its intended pace of interest-rate increases. The Standard & Poor's 500 Index gained 0.3 percent to 1123.50. The Nasdaq Composite Index increased 0.4 percent to 1904.08. Both benchmarks rose for the fifth day in six. The Dow Jones Industrial Average added 0.1 percent to 10,244.49.///www.bloomberg.com