News Column

European Stocks Tumble On Ukraine Fatigue, Weak German Data

August 12, 2014

BRUSSELS (Alliance News) - European stocks tumbled on Tuesday, trimming strong gains from the previous two sessions, as downbeat German economic data renewed concerns about the euro zone recovery.

Mixed signals from the Ukraine kept investors nervous about a potential escalation in the conflict with Russia.

Ukraine allowed humanitarian efforts by the International Red Cross along with other nations, including Russia, even as it charged that Russia had about 45,000 of its troops stationed on the border despite claims of de-escalation.

In economic news, Germany's economic confidence weakened notably to the lowest since December 2012, survey results from the Mannheim-based Centre for European Economic Research/ZEW showed.

The indicator of economic sentiment fell by 18.5 points to 8.6 in August, due to the ongoing geopolitical tensions. This was the lowest score since December 2012, when the reading was 6.9. The expected score for August was 17.

Henkel dropped 4.9%. The detergent maker now expects slower growth of adjusted earnings per preferred share in the second half, citing the rising Russian- Ukrainian conflict and political turmoil in the Middle East.

Commerzbank showing the most strength among major German stocks.

In London, Hargreaves Lansdown lost 3%. UBS initiated the stock with a ''Sell'' rating.

Dutch oil-services company Fugro, which reported a weak first-half, dropped 10% in Amsterdam.

Pandora added 8.3% in Copenhagen. The jewelry retailer announced a new strategic alliance with Disney.

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Source: Alliance News

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