News Column

European Stocks Plunge On Weak German Data

July 7, 2014



BRUSSELS (Alliance News) - European stocks fell sharply Monday after German industrial production declined at the sharpest pace in two years as geopolitical risks weighed on business confidence and demand.

The Euro Stoxx 50 index of eurozone bluechip stocks fell 1.14%.

The German DAX dropped 1.03%, the CAC of France fell 1.4% and the FTSE of the UK slipped 0.6%.

In Frankfurt, Deutsche Boerse lost 3%. Credit Suisse cut the stock to ''Underperform'' from ''Neutral.''

Nomura reduced its rating on Sky Deutschland to ''Neutral'' from ''Buy.'' The stock slipped 0.9%.

Air Berlin was up 1.4%. The German airline reported higher capacity in June, despite flat traffic, adding that it started off the summer with more passengers.

Renault was flat after announcing sales figures for the first half of the year.

Lafarge lost 0.75% after miner Anglo American announced an agreement in principle to sell its 50% ownership interest in Lafarge Tarmac Holdings Limited joint venture to the cement giant for a minimum value of 885 million pounds.

Further, in London, Taylor Wimpey, which issued a trading update for the first half, lost 2.6%.

TeliaSonera picked up 1.8% in Stockholm. The telecommunications firm has agreed to buy domestic peer TelEUR2 AB's operations in Norway for an enterprise value of 5.1 billion Swedish kroner. TelEUR2 is also up around 2%.

Post NL surged 18.6% in Amsterdam. The Dutch mail firm said it now expects full-year underlying cash operating income to range between 260 million euros and 290 million euros, higher than its prior view of 180 million euros and 220 million euros.

A report by Destatis showed that German industrial output fell 1.8% in May from the prior month. This was the third consecutive fall and the biggest since April 2012, when output dropped by 2%. Economists had forecast a 0.2% rise in output, after it declined by a revised 0.3% in April.

Meanwhile, Eurozone investor sentiment recovered in July, after weakening in the previous two months, survey figures from the think-tank Sentix showed. The Sentix indicator rose to 10.1 from June's 8.5. Economists had forecast a lower score of 7.7.



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Source: Alliance News


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