Eurostoxx 50: 2,945.99 (–23.55) Frankfurt DAX: 7,169.97 (–55.99) Paris CAC: 4,020.21 (–40.55):EUROPEAN STOCKS fell this week, as European Central Bank president Jean-Claude Trichet's suggestions of a possible increase in interest rates and concern driven by unrest in North Africa and the Middle East outweighed a drop in the US unemployment rate.
Banking and automobile shares led the drop. United Business Media sank as margins narrowed. Verbund plummeted as full-year profit missed expectations.
The benchmark Stoxx Europe 600 Index fell 0.8 per cent to 281.9 this week.
The gauge, which fell the most since July in the week ended February 25th, is still up 2.2 per cent this year amid better than estimated corporate earnings and indications the global economy is gathering strength. “The sharp increase of the euro against the dollar, due to the announcement from Trichet, while good for the US, is wrong for Europe,” said Louis de Fels, a Paris-based money manager at Raymond James Asset Management International.
He also noted that “the US market is less impacted than Europe by the geopolitical problems in Africa and the Middle East.”
Bank of Ireland fell 13 per cent, contributing to banking stocks being the worst performers among the 19 industries in the Stoxx 600.
A gauge for automobile stocks dropped for a third week, with Italian carmaker Fiat losing 8 per cent.
UBM dropped 11 per cent as the publisher of InformationWeek said margins narrowed at its news and data services divisions on higher investment.
Verbund retreated 10 per cent as Austria’s biggest utility said 2010 profit fell to €400.8 million ($560.8 million) from €644.4 million in 2009.
Carrefour slid 9.2 per cent. The world’s second-largest retailer was cut to “sell” from “hold” at Citigroup because of “gloomy post financial year 2010 results outlook and the value-destructive spin-offs announced”.
Dixons Retail, the UK’s largest consumer electronics seller, plummeted 11 per cent.
SGL gained 18 per cent as Volkswagen bought an 8.2 per cent stake in the world’s largest maker of carbon and graphite products. – (Bloomberg)
