Europe midday: Equities drop despite improved German business confidnece

LONDON (ShareCast) - European indices were in the red as investors shrugged off a better-than-expected report on German business confidence. The Ifo's business sentiment index for Europe's biggest economy increased to 107.9 this month from 106.8 in February, compared to forecasts of 107.3.

"Despite the latest German Ifo business climate data beating expectations, this good news couldn't inspire much growth in the DAX, or the rest of the Eurozone, with the region appearing to be hampered by the euro taking back some of yesterday's losses against the dollar alongside more worries about Greece's financial situation," said Connor Campbell, financial analyst at Spreadex.

The European Central Bank (ECB) has reportedly told Greece's biggest lenders to refrain from increasing their exposure to the nation's government debt, raising pressure on Athens to reach a deal with international creditors so as to unlock further aid.

Greece has promised to deliver a list of solid reforms by Monday to present to creditors.

The euro rose 0.44% to $1.0972.

In the US, durable goods orders figures will be released at 12:30 GMT. Analysts predict orders rose 0.2% month-on-month in February after a 2.8% increase a month earlier.

Food and beverage stocks slide SABMiller (Xetra: BRW1.DE - news) slipped as RBC Capital Markets said that a potential purchase of Kraft Foods Group by 3G Capital (Other OTC: CGHC - news) adds to reasons why Anheuser-Busch InBev won't acquire SAB.

Remy Cointreau SA and Carlsberg A/S (LSE: 0AI4.L - news) were also among the big fallers of food and beverage stocks.

Marine Harvest ASA (LSE: 0OAW.L - news) declined after Nordea Bank AB (LSE: 0JNL.L - news) lowered its price estimate on the shares and reiterated a 'sell' rating.

Accor SA slumped after Eurazeo SA sold 11m shares in the company for €48.75 each.

Hermes International SCA dropped after reporting 2014 operating income that missed analysts' estimates.

Balfour Beatty (Other OTC: BAFBF - news) advanced after reporting annual revenue that met analysts' forecasts.

Brent crude rose 0.7% to $55.50 per barrel, according to the ICE.