News Column

European Stocks Fall From Multiyear Highs

June 11, 2014

VIENNA (Alliance News) - European stocks fell from multiyear highs on Wednesday after the World Bank trimmed its global growth forecast to 2.8% from an earlier prediction of 3.2%, saying developing counties are heading for "disappointing growth" because of the Ukraine crisis, financial market turbulence and unusually cold weather in the US.

The Asian markets turned in a mixed performance amid lack of fresh catalysts and the US index futures point to a lower open later in the day, keeping investors cautious.

The Euro Stoxx 50 index of eurozone bluechip stocks is moving down 0.7% while the Stoxx Europe 50 index, which includes some major UK companies, is down 0.3%, Across Europe, the benchmark indexes in Germany, France and the UK are down between 0.5% and 0.8%.

In stock-specific action, Deutsche Lufthansa AG shares are down nearly 15% in Frankfurt after the airline cut its earnings forecasts for this year and next, citing weaker-than-expected revenue in the passenger as well as freight businesses.

Likewise, shares of Vallourec SA are tumbling 12% in Paris after the steel pipes maker announced downside adjustments in its 2014 guidance, citing a significant temporary reduction in demand for its oil & gas operations in Brazil and in Europe.

Airbus Group is tumbling 4% after losing a major aircraft order from Dubai's Emirates airline.

Financial stocks are trading mostly lower, with BNP Paribas and Societe Generale losing about 2% each in Paris, while German lender Commerzbank is down a percent and Deutsche Bank is moving down 0.8%.

AstraZeneca PLC shares are moving up 0.2% in London. The British drugmaker said that 43 abstracts reporting results of the company's research and development in diabetes have been accepted for presentation at the 74th scientific sessions of the American Diabetes Association in San Francisco this month.

In economic releases, the UK jobless rate fell to 6.6% during February to April compared to 7.2% during November to January and 7.8% during the same period of last year, official figures showed.

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Source: Alliance News

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