Eurostoxx 50: 2,134.15 (–45.51) Frankfurt DAX: 5,376.70 (–125.32) Paris CAC: 2,923.66 (–58.30):EUROPEAN STOCKS fell for a second day yesterday, extending losses from the Stoxx Europe 600 Index's biggest quarterly drop since 2008, as concern deepened the region's debt crisis will curb growth.
The Stoxx 600 lost 1.1 per cent in London. The measure slumped 17 per cent in the third quarter, its largest drop since the final three months of 2008, which followed Lehman Brothers
“We need to see some action in the next one or two months, or it will be too late to avoid a recession,” said Philipp Baertschi, chief strategist at Bank Sarasin and Ciein Zurich. “It’s too early to jump into the market and catch the falling knife.”
Euro-area finance chiefs are meeting in Luxembourg to weigh the threat of a Greek default, grapple with how to shield banks from the fallout and consider a further boost to the rescue fund.
Some equity strategists say this year’s 19 per cent slump in European equities is not commensurate with the outlook for companies’ profits.
“The market has over-reacted to concerns of slowing growth and sentiment has moved to depressed levels,” Ian Scott, the London-based global strategist at Nomura, said.
BHP Billiton dropped 1.6 per cent to 1,710p and Rio Tinto declined 2.4 per cent to 2,819.5p.
Copper fell as much as 5.5 per cent to $6,635 a metric ton in London, its lowest price since July 2010.
Commerzbank sank 7.3 per cent to €1.76 and France’s Société Générale lost 5.2 per cent to €18.97.
Barclays, Britain’s second-largest bank by assets, retreated 3.2 per cent to 156.25p.
Dexia plunged 10 per cent to €1.30 as Moody’s Investors Service placed the credit ratings of the lender’s three main operating entities on review for possible downgrade.
BMW, the world’s biggest maker of luxury cars, sank 5.7 per cent to €47.12.
Alcatel-Lucent, France’s supplier of telecommunications equipment plunged 12 per cent to €1.94.
Holcim, the world’s second biggest cement maker, rose 5.7 per cent to 51.45 Swiss francs after SonntagsZeitung reported that board member Thomas Schmidheiny said he will increase his stake in the firm. – (Bloomberg)
