Surging bond yields peg markets back
Pre-tax profit of £36 million also fell short of forecasts.
Burberry, the UK’s largest luxury-goods company, slid 3.2 per cent to 1,298 pence.
EUROPEAN STOCKS dropped for a second day as Moody’s downgraded Spain and Cyprus, while Switzerland’s central bank said that Credit Suisse Group must increase its capital this year.
Germany’s DAX slipped 0.2 per cent.
France’s benchmark CAC 40 added 0.1 per cent.
Greece’s ASE Index rallied 10 per cent for its biggest climb since August.
Bayerische Motoren Werke, the world’s biggest maker of luxury vehicles, dropped 2.6 per cent to €56.29.
Daimler, the third-largest maker of luxury autos, decreased 2 per cent to €33.60. Morgan Stanley reduced its earnings-per-share prediction for the carmakers by 5 per cent to 10 per cent for2012 to 2014.
National Bank of Greece, the country’s largest lender, soared 26 per cent to €1.31 euros as bets showed that New Democracy, the party that backs the terms of both bailouts from the European Union, may win the election on June 17th.
Petropavlovsk surged 14 per cent to 469.9 pence, its largest rally since October 2009.
The Russian gold producer increased its production target for 2012 by 20,000 ounces.
US stocks jumped yesterday after news major central banks are preparing co-ordinated action if the results of Greek elections this weekend generate turmoil in financial markets.
The central banks from major economies will take steps to stabilize markets and prevent a credit squeeze, Group of 20 officials told Reuters.
The news late in the trading day invigorated a market that has been highly volatile this week, whip-sawed by concerns the ballot in Greece on Sunday may set the stage for the countrys exit from the euro zone.
Energy was the top-gaining SP sector, rising 1.7 per cent, helped by a 2 per cent rise in U.S. crude oil prices.
Chevron was a top boost to the Dow, up 1.8 per cent to $101.92.
Some of the initial pop in prices faded into the close, however, with Wall Street seen still subject to sharp swings.
The Dow hit an intraday high up 1.6 percent but closed up 1.2 percent at 12,651.91. The SP 500 ended up 1.08 per cent at 1,329.10. – (Additional reporting Bloomberg/Reuters)