Eurostoxx 50: 2,983.33 (–29.01) Frankfurt DAX: 7,318.35 (–3.46) Paris CAC: 4,050.27 (–47.14): EUROPEAN STOCKS retreated for a third day yesterday, as Libya cracked down on anti-government protests amid continuing political unrest in the Middle East and North Africa, overshadowing a jump in US consumer confidence.
The Stoxx Europe 600 Index dropped 0.6 per cent to 285.38 at the close in London for the biggest three-day decline since November.
Events in the Middle East and North Africa are “a trigger for a correction”, said Markus Steinbeis, head of equity portfolio management at the Unterfoehring, Germany-based unit of Pioneer Investments KGmbH.
The market is pricing in the possibility that instability could spread to Saudi Arabia, he said. Oil surged to the highest price since September 2008 as soldiers deserted Libyan leader Muammar Gadafy’s government and dip- lomats resigned in protest over a crackdown on anti-government demonstrators that has left hundreds dead.
Chinese authorities blocked foreign news reports on protests to resist any movement toward pro-democracy revolts.
UniCredit, Italy’s biggest bank, slid 1.8 per cent to €1.84.
Impregilo, the country’s largest construction company, lost 2.1 per cent to €2.62.
Air France, Europe’s biggest airline, slumped 3 per cent to €11.79 amid speculation higher oil prices will increase fuel costs. The decline pulled a measure of travel and leisure shares to the biggest fall among 19 industry groups in the Stoxx 600.
Informa sank 2.9 per cent to 436.2p, the biggest retreat this month.
The publishing company said full-year net income fell to £98.9 million ($160 million) from £105.6 million.
National Bank of Greece, the nation’s largest lender, slid 2.1 per cent to €7.44.
Greece may be unable to sustain efforts to tackle its debt, forcing a restructuring of bond payments, European Bank for Reconstruction and Development President Thomas Mirow said in an interview with Sueddeutsche Zeitung.
Q-Cells retreated 4.2 per cent to €3.17 even after the German solar company reported increased 2010 sales.
Jyske Bank gained 7.5 per cent to 237 kroner, the biggest advance since May. – (Bloomberg)
