Tags: Europe | stocks | Greece | Portugal

Europe Stocks Fall for Third Day Amid Drops in Greece, Portugal

Tuesday, 09 Sep 2014 12:31 PM

European stocks fell, posting their biggest three-day decline in a month, as national benchmark gauges slipped in Greece, Portugal and Spain.

The Stoxx Europe 600 Index dropped 0.4 percent to 344.87 at the close, having extended losses after the U.S. market opened. Greece’s ASE Index fell 2.6 percent, as Portugal’s PSI 20 Index slid 1.5 percent and Spain’s IBEX 35 Index retreated 1.4 percent, for the biggest drops among 18 western-European markets.

“We don’t see a huge opportunity in European equities at the moment,” said Stewart Richardson, who helps oversee about $100 million as chief investment officer at RMG Wealth Management LLP in London. “We don’t expect a significant pick-up in the European economy this year. If Scotland votes Yes in the referendum, that will impact the U.K. economy and spill over into Europe’s economy as well.”

The Stoxx 600 fell 0.4 percent yesterday as a YouGov Plc survey indicated for the first time that a majority of voters in Scotland favored breaking away from the U.K. Another poll showed today that 38 percent of respondents said they would vote Yes to independence in the Sept. 18 referendum, up from 32 percent, while 39 percent favored the status quo.

The U.K.’s FTSE 100 Index dropped less than 0.1 percent today after sliding as much as 0.3 percent. Germany’s DAX Index and France’s CAC 40 Index both fell 0.5 percent.

The Stoxx 600 is pausing a rally that sent it 0.2 percent below a six-year high last week. The gauge climbed 5.4 percent this year through yesterday, jumping 1.1 percent on Sept. 4 after the European Central Bank unexpectedly cut all three of its main interest rates and said it will start buying assets.

The volume of shares of Stoxx 600 companies traded today was 8.8 percent greater than the 30-day average, according to data compiled by Bloomberg.

Smaller Growth

L’Oreal SA retreated 1.3 percent to 125.50 euros. The French company expects the cosmetics market will grow 3 percent to 3.5 percent in the six months through December, Chief Executive Officer Jean-Paul Agon said in an interview in today’s Le Figaro. That’s less than the August estimate of 3.5 percent to 4 percent.

Gamesa Corp. Tecnologica SA declined 5.5 percent to 9.22 euros. The Spanish renewable energy company is selling as many as 25.4 million shares, equivalent to 9.99 percent of capital, according to terms of the deal. The shares are being offered at 9.15 euros to 9.35 euros each. The stock closed at 9.76 euros yesterday.

ABB Ltd. advanced 0.5 percent to 21.56 Swiss francs after saying it will buy back shares for $4 billion. The world’s biggest builder of power grids also said it will grow operational earnings per share by 10 percent to 15 percent on a compound annual basis between 2015 and 2020. It aims to boost comparable sales by 4 percent to 7 percent, the company said.

Brazilian Unit

Telecom Italia SpA added 3 percent to 91.4 euro cents amid bid talks for its Tim Participacoes SA unit. America Movil SAB said it plans to enter talks to make an offer with Oi SA for the Italian company’s wireless unit in Brazil.

Finmeccanica SpA gained 1.6 percent to 7.45 euros after Corriere della Sera reported that China CNR Corp. and Insigma Technology Co. bid for two of its units. The offer for AnsaldoBreda and Ansaldo STS SpA does not include job cuts, the newspaper reported without saying where it got the information.

Quindell Plc climbed 1.4 percent to 167.25 pence after winning a court ruling in libel proceedings against Gotham City Research LLC. The stock slumped 39 percent on April 22 after the short seller questioned the company’s profits.

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European stocks fell, posting their biggest three-day decline in a month, as national benchmark gauges slipped in Greece, Portugal and Spain.
Europe, stocks, Greece, Portugal
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2014-31-09
Tuesday, 09 Sep 2014 12:31 PM
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