Black Friday is Now! Don’t miss out on up to 60% OFF InvestingProCLAIM SALE

European stocks tumble on Greece worries; DAX drops 1.38%

Published 02/16/2012, 04:12 AM
NDX
-
UK100
-
FCHI
-
DJI
-
DE40
-
STOXX50
-
HSBA
-
BARC
-
NWG
-
DBKGn
-
AXAF
-
BNPP
-
SOGN
-
XTA
-
RIO
-
BHPB
-
KAZ
-
HG
-
FTNMX551030
-
Investing.com - European stock markets were sharply lower on Thursday, weakened by heavy losses in financial stocks after Moody’s said it may downgrade global banks while delays in Greek debt talks continued to weigh.

During European morning trade, the EURO STOXX 50 plunged 1.22%, France’s CAC 40 dropped 0.75%, while Germany’s DAX 30 tumbled 1.38%.

Sentiment was hit following reports that European Union officials are looking at ways to delay the second bailout, amid concerns that political leaders in Greece are not fully committed to implementing harsh austerity measures demanded by international creditors.

On Wednesday, Eurogroup President Jean Claude Juncker said he was confident that finance ministers will make a final decision on Greece's new bailout and private-debt restructuring at a meeting on Monday.

Shares in France’s second largest bank, Societe Generale slumped 3.82% after saying fourth-quarter profit declined 89% as the investment bank posted a loss.

Meanwhile BNP Paribas also tumbled 2.46%, while German lenders Deutsche Bank and Commerzbank plummeted 3.39% and 3.64% respectively.

Axa, Europe’s second-largest insurer, also contributed to losses, with shares retreating 3.15% after the company posted an 82% drop in second- half profit, given it didn’t repeat a gain from an asset disposal in the first half and on lower sales of life-insurance products.

Elsewhere, in London, FTSE 100 dropped 0.71%, weighed by losses in the financial sector while data showed that consumer confidence in the U.K. rose more-than-expected in January.

Shares in Lloyds Banking plummeted 3.38% and Barclays tumbled 3.08%, while the Royal Bank of Scotland and HSBC Holdings saw shares plunge 2.25% and 1.46%.

Mining giants Rio Tinto and Bhp Billiton also added to losses with shares tumbling 2.02% and 1.59%, while copper producers Xstrata and Kazakhmys fell 0.74% and 1.70% respectively.

In the U.S., equity markets pointed to a lower open. The Dow Jones Industrial Average futures pointed to a fall of 0.27%, S&P 500 futures signaled a 0.38% decline, while the Nasdaq 100 futures indicated a 0.21% loss.

Later in the day, the U.S. was to publish official data on building permits and on housing starts, as well as reports on producer price inflation and unemployment claims. Federal Reserve Chairman Ben Bernanke was also due to speak.


Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.