Eurostoxx 50:2,732.54 (–45.58) Frankfurt DAX:7,069.90 (–89.76) Paris CAC:3,805.09 (–73.56)
EUROPEAN STOCKS plunged yesterday, with the benchmark Stoxx Europe 600 Index falling for the seventh time in eight days to the lowest level in 2½ months, amid concern about the strength of the economy.
The Stoxx 600 slid 1.3 per cent to 268.13 at the close in London, extending this week’s drop to 2 per cent.
All 19 industry groups declined. The gauge has lost 4.6 per cent this month, falling to the lowest level since March, as reports on US employment and factory orders added to concern that the economy is faltering.
“There’s a lot of bearish sentiment around the macro environment that’s eating away at risk appetite,” said Henk Potts, an equity strategist at Barclays Wealth in London.
The 7.9 per cent slump from this year’s high in February has dragged the Stoxx 600’s valuation to about 12.8 times its companies’ reported earnings, near the cheapest since 2008, according to Bloomberg.
National benchmark indexes fell in all of the 18 western European markets yesterday.
Sulzer retreated 5 per cent to 138.80 Swiss francs, a two-month low, after saying Buechner is leaving to replace Hans Wijers as chief executive of Akzo Nobel.
Akzo shares slipped 1.2 per cent to €47.88.
LVMH Hermes sank 4.8 per cent to €182.70, the biggest drop this year. A spokesman for LVMH said the world’s largest maker of luxury goods does not intend to bid for Hermes, the bag maker in which it holds a 20.2 per cent stake.
Total declined 1.7 per cent to €38 and BP dropped 1.8 per cent to 442.05p.
Rio Tinto slid 2.3 per cent to 4,104p as a gauge of mining stocks was the biggest decliner in the Stoxx 600.
BHP lost 1.9 per cent to 2,279.5p.
Eurasian Natural Resources, which earlier in the week voted against rehiring independent directors Richard Sykes and Kenneth Olisa, retreated 7.5 per cent to 742p, the lowest since July 2009.
Hays rallied 2.9 per cent to 109.2p, the largest gain since April, after the Daily Mailreported that Adecco may be lining up a 160p per share cash bid for the biggest UK recruitment company. – (Bloomberg)
