Equities slide on region's debt crisis concerns

Eurostoxx 50:2,866.23 (+11.44) Frankfurt DAX:6,804.45 (+23.48) Paris CAC:3,913.73 (+21.02)

EUROPEAN STOCKS fell for the first time in four days yesterday, as Irish and Greek bonds sank amid concern European Union leaders will struggle to solve the region’s debt crisis.

The Stoxx Europe 600 Index slipped 0.2 per cent to 271.8 at the close in London, as more than two stocks fell for each that gained.

Debt crises confronting EU countries are weighing on the outlook, chief executive officer Eckhard Cordes said yesterday at a press conference in Dusseldorf, Germany.

Irish, Greek and Portuguese two-year notes fell and the cost of debt insurance surged.

EU finance chiefs settled late yesterday on a permanent rescue fund to lend €500 billion ($712 billion) as of 2013, while remaining divided over how to get the current stopgap fund to its full capacity.

Allied Irish Banks, a government-controlled lender, res-ponded to market speculation by saying it has “no plans” to miss interest payments on its bonds.

National benchmark indexes fell in 15 of the 18 western European markets yesterday.

Espirito Santo, Portugal’s biggest publicly traded bank, dropped 2.6 per cent to €3.14.

Banco Comercial Portugues slid 2.5 per cent to 63.4 cents.

Banco BPI lost 2.4 per cent to €1.33.

US defence secretary Robert Gates yesterday said the intensity of the military campaign in Libya will ease soon after allied forces began imposing a no-fly zone on Muammar Qadafy’s regime over the weekend.

Metro lost 4.7 per cent to €47.74.

Germany’s largest retailer said political turmoil in the Middle East and Japan’s earthquake posed risks to economic growth.

Swatch advanced 2.2 per cent to 395 francs after watch exports in Switzerland rose 17.8 per cent in February, according to the Federal Customs Offices.

Cie. Financiere Richemont, the world’s largest jewellery maker, gained 3.3 per cent to 51.8 francs.

Petropavlovsk rose 3.1 per cent to 1,046p.

The gold producer in Russia said proven and probable ore reserves increased by 36 per cent to 9.1 million ounces of gold following a successful exploration program. – (Bloomberg)