Eurostoxx 50:2,382.22 (–77.14) Frankfurt DAX:6,141.34 (–204.85) Paris CAC:3,242.84 (–105.79)
EUROPEAN STOCKS dropped yesterday, paring their biggest monthly gain since July 2009, as some investors remain reluctant to buy equities before the euro area’s leaders explain how they will fund their expanded bailout facility.
The Stoxx Europe 600 Index slid 2.2 per cent at the close.
“There are lots of missing details and it’s still frustrating slow,” said Kevin Gardiner, the global head of investment strategy at Barclays’ wealth unit. “But it’s shown a commitment that’s needed to provide the financial backstop for the banking system. Markets will stay volatile.”
The G20 leaders convene on November 3rd and 4th in Cannes, France, a week after the euro area’s authorities pledged to magnify the capacity of their rescue fund to one trillion euro ($1.4 trillion).
The euro area has already sought financial help from China and co-operation from the International Monetary Fund.
While the G20 summit will be a “key milestone”, any commitments “are unlikely to be crystallised” until the European Financial Stability Facility’s overhaul is completed, said Jens Larsen, chief European economist at RBC Capital Markets in London.
Vestas slumped 24 per cent to 84.35 kroner for its biggest slide since 2002. The wind-turbine maker predicted revenue of €6.4 billion in 2011, down from the €7 billion it had forecast in August.
HSBC lost 3.6 percent to 544.9p. BNP Paribas sank 9.6 per cent to €32.85. UniCredit slipped 5.7 per cent to 84.8 cent as La Stampa reported that Italy’s largest bank plans to raise €6 billion to €8 billion.
Rio Tinto, the world’s second-biggest mining company, lost 6.5 per cent to 3,385p.
BHP Billiton declined 6.4 per cent to 1,967.5p.
Copper, nickel and tin prices fell on the London Metals Exchange.
Homeserve tumbled 28 per cent to 350p after the UK-based emergency-repair service provider suspended all telephone sales and marketing because a review showed sales processes did not meet standards.
TNT Express rallied 5 per cent to €6.17 as Europe’s second-largest express-delivery service posted an unexpected third-quarter profit. – (Bloomberg)
