European values slide on recovery fears

European stocks fell, completing their biggest weekly drop since May 2012, amid concern the region’s central bank will face obstacles in its measures to revive the region’s economy.

National benchmark indexes fell in all of the 18 western European markets, led by Germany’s DAX that tumbled 2.4 per cent. France’s CAC 40 plunged 1.6 per cent, taking its losses since a high in June to 11 per cent. The UK’s FTSE 100 slipped 1.4 per cent to its lowest level in a year.

In Dublin, the Iseq Overall Index declined by 1.65 per cent to 4,490.04 on what one trader described as a “negative day in a negative week for markets”.

DUBLIN Aer Lingus and Ryanair closed down as concerns over the spread of Ebola weighed on airline stocks across Europe. Aer Lingus was off 1.3 per cent at €1.13 while Ryanair closed down 0.9 per cent at €6.763.

CRH was down 2.5 per cent at €16.435 while Smurfit Kappa finished 6.6 per cent lower at €15.59. Davy downgraded Smurfit Kappa's earnings by 2 per cent on concerns about a reduced profits from Venezuela.

The two main property investment stocks had contrasting fortunes. Green Reit closed up 0.4 per cent at €1.265 while Hibernian Reit finished 2.2 per cent lower at €1.05.

Among other stocks, Ireland's biggest hotel operator Dalata closed down 2.2 per cent at €2.884 while insurer FBD finished 3.3 per cent lower at €13.30.

Fruit distributor Fyffes, which is seeking to a global merger with US-based rival Chiquita, was one of the few stocks to close up on the day.

Bank of Ireland had a "volatile" day, according to one trader, but closed unchanged at 28 cent.

EUROPE Contributing to the European slide was concern that the region’s central bank will face obstacles in its measures to revive the region’s economy.

The Stoxx 600 dropped 1.6 per cent to 321.62 at the close, its lowest level since February 5th, after paring a retreat of as much as 1.9 per cent.

The gauge lost 4.1 per cent this week as the International Monetary Fund cut its global-growth forecasts and German industrial output shrank the most since 2009.

LONDON UK stocks slumped for a third week, with the FTSE 100 Index posting its worst week since June 2013, as concerns mount that Europe’s recovery is losing momentum.

Carnival fell 2.7 per cent. Anglo American, Fresnillo and Antofagasta dropped as commodity producers slipped. Tullow Oil plunged 7.9 per cent, the lowest in almost six years, after reporting a dry well off Gabon.

The FTSE 100 lost 91.88 points, or 1.4 per cent, to 6,339.97 at the close in London. The benchmark gauge has fallen 2.9 per cent this week. The measure is down 7.5 per cent since reaching an almost four-month high on September 4th.

The broader FTSE All-Share Index fell 1.4 per cent.

NEW YORK Procter and Gamble, United Health Group and Coca-Cola gained more than 1.5 per cent. Energy shares climbed after oil prices erased losses.

Coke was up 1.6 per cent to $44.55 and on track for a record close.

“Investors are seeking to get more defensive, and that means buying high-quality names like Coca-Cola,” said David Carter, chief investment officer at Lenox Wealth Advisors in New York.

Earlier this week, PepsiCo warned of “continued macro and political volatility” overseas. Despite that, Pepsi also posted a strong profit in its most recent quarter and raised its full-year earnings outlook.

More than $1 trillion has been erased from the value of US equities in the three weeks since September 19th, on concerns a stalling economy in Europe and slowing growth in China will hurt profits at US corporations. – (Additonal reporting: Bloomberg)