European values slide on Greek turmoil

European stocks fell. The Stoxx Europe 600 Index posted its biggest weekly decline in 13 months as Greek prime minister Antonis Samaras lost one of his two coalition partners and investors weighed the outlook for Federal Reserve stimulus measures.

DUBLIN
It was a busy session in Dublin yesterday according to one stockbroker. The Iseq slipped 0.17 per cent but still managed to outperform the rest of Europe for a second day, thanks mainly to CRH and Ryanair.

They were among the most traded stocks along with Kerry Group, Glanbia and Bank of Ireland.

“It was a big day for DCC going into the FTSE and Glanbia entering the Stoxx 600 index,” said the broker.

Ryanair finished the day at €7.201, up 2.06 per cent as the markets reacted to the news of the company's plan to return up to €1 billion to shareholders in the next two years. CRH closed at €15.15, up slightly by 0.73 per cent. Kerry Group was the biggest underperfomer of the day, according to the broker. It closed down 3.29 per cent to €40.10. Glanbia was up 1.72 per cent to €10.05. Bank of Ireland was down 3.31 per cent to €0.14.

LONDON
The UK's FTSE 100 fell 43.34 points, or 0.7 per cent, to 6,116.17, a level not seen since January. Britain's top shares recorded a fifth straight weekly loss, hit by the prospect of curbs on US monetary stimulus.

Energy, financial and materials stocks were the biggest drag as investors fretted that a reduction in the US Federal Reserve’s asset purchases, flagged late on Wednesday, would slow growth and depress global markets.

RBS fell 7.2 per cent to 281.7p. The state-controlled lender has tumbled 13 per cent for the biggest three-day drop in almost a year since chancellor of the exchequer George Osborne said the treasury would investigate the case for breaking up RBS and spinning off its toxic assets into a "bad bank".

Marks & Spencer slipped 2.7 per cent to 418.2p after Credit Suisse reiterated an underperform rating on the shares, saying the retailer faces increased competition.

EUROPE
European shares tumbled in heavy trade, with one major benchmark turning negative on the year for the first time in 2013. Greek shares plummeted, with Athens's benchmark losing 6.1 per cent, after one party pulled out of the ruling coalition, leaving prime minister Antonis Samaras with a tiny majority in parliament.

The FTSEurofirst 300 index of top European shares ended 1 per cent lower at 1,132.68 points, a level not seen since late December, and suffered its biggest weekly drop in more than a year, down 3.7 per cent.

The euro zone’s Euro STOXX 50 index ended 1.4 per cent lower at 2,549.48 points, on nearly twice the average daily volume over the past three months, a spike mostly due to the expiry of monthly and quarterly options and futures. France’s CAC 40 lost 1.1 per cent, while Germany’s DAX tumbled 1.8 per cent.

Danone, which owns the Evian water brand, rallied 2 per cent to €56.23. Eurotunnel, which operates the tunnel connecting England and France, dropped 6.5 per cent to €5.14, the lowest price since January 2012.

NEW YORK
US stocks turned lower as the bounce from a two-day sell-off faded and banking stocks fell, while a drop in Oracle shares dragged down the Nasdaq.

Values have slumped since Wednesday, when Federal Reserve chairman Ben Bernanke laid out the Fed's plans to pull back on its $85 billion in monthly asset purchases. Large bank shares were hit hard as the treasuries sell-off continued, on fears of sharp writedowns linked to their bond holdings.

Citigroup fell 4 per cent to $45.97 and Morgan Stanley lost 3.1 per cent to $24.37.

Facebook rose 1.3 per cent to $24.22 after UBS raised its rating to "buy" from "neutral". – (Additional reporting, Bloomberg/Reuters)