🔮 Better than the Oracle? Our Fair Value found this +42% bagger 5 months before Buffett bought itRead More

Euro shares down sharply on ECB member warning; DAX off 1.13%

Published 03/28/2012, 01:33 PM
Updated 03/28/2012, 01:34 PM
NDX
-
UK100
-
FCHI
-
DE40
-
STOXX50
-
NOKIA
-
NXGN
-
TWR
-
Investing.com – European stocks closed lower Wednesday as European Central Bank Governing Council member Jens Weidmann stated that increasing the euro zone’s rescue fund will not solve the debt crisis, plunging the region back into worry mode.
 
Near the close of European trade, the EURO STOXX 50 traded down 1.13%, France's CAC 40 fell 1.14%, while Germany’s DAX traded lower by 1.13%.  Meanwhile, in the U.K. the FTSE 100 gave back 1.03%
 
Euro zone finance ministers are expected to increase Europe’s bail out funds to between EUR700 billion and EUR900 billion at a meeting in Copenhagen on March 30th.
 
Even German Chancellor, Angela Merkel has signaled that she is prepared to allow an increase in the “firewall” as Portugal and Spain show weakness.
 
However, ECB Governing Council member, Jens Weidman made clear his opposition to increasing the funds in a talk at the Chatham House in London earlier today.
 
Weidman stated, “Just like the tower of Babel, the ‘Wall of Money’ will never reach heaven. If we continue to make it higher and higher, we will, in fact, run into more worldly constraints which might include setting incentives that lead to new problems in the future.”

Meanwhile in the U.S., the Commerce Department reported durable goods orders increased 2.2% in February, partially reversing the previous months revised 3.6% decline, but fell short of expectations for a 3.0% increase, further adding to the equity bearish environment.
  
Core durable goods orders, which exclude transportation, rose by a seasonally adjusted 1.6% in February, compared to expectations for a 1.5% gain. 
  
The information was released one day after Federal Reserve Chairman Ben Bernanke stated that it was still too early to declare victory in the U.S. economic recovery, spurring speculation that the central bank may initiate a third round of monetary easing to support growth.
 
Ervaz gave back 5.5% as Russia’s largest steelmaker income missed analyst’s estimates.
 
ICAP fell 3.5% despite the bank transaction broker saying its full year estimates are in line with analysts projections.
 
Nokia Oyj climbed 3.5% after Swedebank upgraded shares to buy saying the mobile phone maker will ship “decent” volumes this year.

U.S. shares are lower in midsession trade with the Dow down 0.63%, the S&P 500 off 0.84% and the Nasdaq giving back 0.76% on the day.

 Investors are awaiting U.S. GDP and initial jobless claims as well as German unemployment change on Thursday.




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.