Eurostoxx 50:3,012.34 (–55.66) Frankfurt DAX:7,321.81 (–105) Paris CAC:4,097.41 (–59.73)
EUROPEAN STOCKS declined yesterday, as investors speculated that the unrest in Libya will cause energy prices to climb, fuelling inflation and curbing economic growth.
The Stoxx Europe 600 Index fell 1.3 per cent to 287.18 at the close in London, the gauge’s largest drop in a month.
Even so, the gauge has advanced 4.1 per cent since the start of 2011 as investors bet that a stronger economic recovery will boost corporate earnings.
“The political unrest in the Middle East appears to be getting worse and spreading to other countries,” said Gregor Smith, a fund manager at Daiwa Asset Management in London.
“It could push up the oil price. It would obviously have a negative impact for inflation and could cause economic growth to be weaker than expected.”
Stocks extended their losses after Muammar Gadafy’s son called on protesters in Libya to begin a dialogue or face a civil war, risking the country’s oil wealth.
OMV, which also operates in Libya, dropped 4.2 per cent to €32.57.
TNT NV lost 2.5 per cent to €19.94 as full-year net income missed analysts’ estimates.
CSR slumped 9.7 per cent to 392p after the London-based wireless-technology producer said it would buy Zoran of the US, which specialises in imaging technology, for $679 million.
JJB Sports, the unprofitable UK sporting goods retailer, fell 17 per cent to 31.5p after raising £31.5 million ($51.1 million) in a share sale.
Merck advanced 4.5 per cent to €65.50 after the drugmaker reported core earnings, excluding costs such as writedowns and merger expenses, of €1.78 a share, beating the average estimate of €1.49 from 16 analysts surveyed by Bloomberg.
Alpha Bank soared 5 per cent to €5.03 after the shares resumed trading yesterday.
Hammerson advanced 1.7 per cent to 455.2p after saying full-year earnings, excluding changes in asset values, rose to £140.2 million from £125.3 million a year earlier.
Invensys jumped 3.7 per cent to 357.8p after the Observer newspaper reported that several engineering companies may bid for the British manufacturing company. – (Bloomberg)
