European stocks slid the most in a week

European stocks slid the most in a week after Federal Reserve Bank of Philadelphia President Charles Plosser said that the third round of bond buying may fail to stimulate growth or hiring.

Plosser said yesterday after the close of European trading that the Fed’s latest round of quantitative easing may jeopardize the central bank’s credibility.

In addition, the tension in the markets related to the situation in Spain. Thus, the Spanish provinces continue to require financial assistance from the government in Madrid, which could lead to the need for more international aid to Spain, and early elections. The government is considering the possibility of Andalusia ask Madrid financial support of almost 5 billion euros. Catalonia, Valencia and Murcia have already asked for help to Madrid. Catalan President Artur Mas has already appointed on November 25, early elections that could turn into a referendum on more autonomy for the province. Spanish Prime Minister Mariano Rajoy has rejected demands Catalonia give her a more substantial tax autonomy. Also tomorrow, the government of Spain Prime Minister Mariano Raho intends to submit a draft budget for 2013, and all of the market's attention is now focused on the news again, which could indicate the possible development of events related to the debt crisis in the eurozone.

Recall that in July M.Rahoy presented the package of austerity measures, in which the tax increase was combined with a reduction in salaries in the public sector and payments provided for by benefits. As a result of these measures the Spanish budget deficit of 2.5 years, is scheduled to drop to a level of 65 billion euros. Spain intends to reduce its budget deficit to 4.5% of GDP in 2013 to 6.3% in the current year.

Anglo American Plc lost 2.5 percent, contributing the most to a decline by a gauge of mining companies, after saying that it plans to reduce its production of coal.

BHP Billiton Ltd. and Rio Tinto Group retreated 1.6 percent and 2 percent, respectively, as metal prices dropped.

FTSE 100 5,794.6 -65.11 -1.11%

CAC 40 3,444.16 -69.65 -1.98%

DAX 7,310.33 -114.78 -1.55%