Renewed Greek worries depress markets
Concerns about reduced stimulus from central banks weigh on markets
British Sky Broadcasting gained 1.9 per cent, to 792 pence after Banco Espirito Santo said it may get a new bid from News Corp.
European markets declined as concern grew that central banks may scale back stimulus measures and as Greek politicians wrangled over the closure of the nation’s broadcaster.
France’s CAC 40 retreated 0.4 per cent while Germany’s DAX lost 1 per cent. The volume of shares changing hands in Stoxx 600 companies was 5.5 per cent lower than the average of the last 30 days, according to data compiled by Bloomberg.
Societe Generale slid 2.5 per cent to €28.46 and Deutsche Bank declined 3.2 per cent to €34.40.
Kabel Deutschland jumped 8.2 per cent to €80.84, for the biggest advance on the Stoxx 600, after Vodafone, the world’s second-largest wireless carrier, confirmed it discussed acquiring the German cable operator to expand in the broadband and TV market. Kabel Deutschland Vodafone contacted Kabel Deutschland, which has a market value of about €7 billion to discuss an offer within the past week.
Inditex added 3.5 per cent to €101.30 after reporting a 5.2 per cent increase in first-quarter sales to €3.59 billion. The world’s biggest clothing retailer also forecast stable profitability even after first-quarter profit advanced at the slowest pace in four years.
US stocks fell, sending the Standard and Poor’s 500 Index to a third day of losses, as investors weighed prospects for economic growth and the pace of Federal Reserve stimulus measures.
The S&P 500 fell 0.4 per cent to 1,619.39 at lunchtime in New York, erasing a 0.7 per cent rally earlier. The Dow Jones Industrial Average declined 69.50 points, or 0.5 per cent, to 15,109.26.
Biogen Idec slipped 6.5 per cent to 208.7 cent as Citigroup cut its recommendation on the stock.
Cooper Tire and Rubber soared 40 per cent after agreeing to be acquired by Apollo Tyres Ltd. for about $2.57 billion (€1.95 billion).
Hewlett-Packard gained 3.4 per cent, the most in the Dow, to $25.05. Chief executive officer Meg Whitman told CNBC that the personal-computer maker is ahead of its target in the turnaround as the company has made half of its planned job cuts.
Technology licensing group Rambus jumped 5.1 per cent after settling patent litigation with SK Hynix. – (Additional reporting Bloomberg)