News Column

European Stocks Slide On Geopolitical Tensions

June 16, 2014

BRUSSELS (Alliance News) - European stocks edged down for a second consecutive session Monday, even as tame inflation data raised expectations for further stimulus from the European Central Bank.

Final data from Eurostat showed that inflation eased to 0.5% in May from 0.7% in April. The rate came in line with the flash estimate published on June 3. Month-on-month, prices fell 0.1%.

Investors remained a bit jittery amid escalating violence in Iraq, where Sunni insurgents stepped up attacks on the military.

Russia threats to cut off Ukraine gas supplies also weighed on sentiment.

The Euro Stoxx 50 index of eurozone bluechip stocks fell 0.48%, and is down 1.15% from a week ago.

The German DAX lost 0.29%, the French CAC 40 dropped 0.73%, the UK'sFTSE 100 slipped 0.34%.

BT Group PLC was down 2.6% following a report that the former telecommunications monopoly may have to increase payments to its company pension plan.

Credit Agricole and Societe Generale were among the more notable losers in Paris, while BNP Baribas bucked the downtrend with a gain of 0.7%.

Airbus and Safran were lower. The two have decided to set up a joint venture for manufacturing space launchers.

In London, Smith & Nephew was flat after US-based Medtronic decided to buy Dublin, Ireland-based Covidien.

Persimmon continued to decline, losing another 2.3%.

Allocate Software, a provider of workforce and compliance optimization solutions, said it delivered another strong performance in the year. The stock was up 6%.

Biopharmaceutical company Actelion said its experimental lung disease drug Selexipag met primary endpoint in late-stage study. The stock surged 14% in Zurich.

Mediobanca SpA said it will withdraw from Telco SpA, an investment vehicle that owns 22.4% of Telecom Italia, according to Bloomberg.

BlackRock Inc. said Credit Suisse's guilty plea in a US tax evasion case does not affect its business relationship with the Swiss bank, according to Swiss newspaper Finanz und Wirtschaft. Credit Suisse was down fractionally.

Vestas Wind Systems lost 4.5% in Copenhagen. Barclays cut the stock to ''Underweight'' from ''Equalweight.'

Syngenta has agreed to buy Swedish ag company Lantmaennen's winter wheat business operations. Syngenta lost 0.4%.

Novartis said the US FDA licensed a facility for the production of cell-culture flu vaccines. Shares rose 0.4%.

Sonova said it has acquired 100% of the shares of Sweden hearing aid maker Comfort Audio i Halmstad AB. Sonova lost 0.5%.

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Source: Alliance News

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