European stocks dropped as Germany and France disagreed on when to introduce a banking union for the euro area and a report added to concern about the strength of China’s economy.
Anglo American Plc slid 2.6 percent, contributing the most to a decline by a gauge of mining companies. CGGVeritas (GA) tumbled 5.3 percent after agreeing to buy Fugro NV (FUR)’s seismic division for 1.2 billion euros ($1.6 billion). TNT Express NV (TNTE) lost 2.6 percent as the company’s chief executive officer resigned.
The Stoxx Europe 600 Index (SXXP) fell 0.4 percent to 274.7 at the close, its largest drop since Sept. 18. Metal producers, banks and construction companies declined.
German Chancellor Angela Merkel rejected French President Francois Hollande’s appeal to activate oversight of the banking union “the earlier, the better.” The deadlock over regulation may delay into next year a key building block in resolving the single currency’s debt crisis.
In China, manufacturers and retailers are less optimistic about sales than they were three months ago. Previous economic reports showed that manufacturing, trade and retail sales slowed in the third quarter. That pointed to a seventh straight deceleration in quarterly growth and potentially the weakest annual expansion for the world’s second- largest economy in 22 years.
National benchmark indexes fell in every western-European market except Denmark and Iceland.
FTSE 100 5,838.84 -13.78 -0.24% CAC 40 3,497.22 -33.50 -0.95% DAX 7,413.16 -38.46 -0.52%
Stocks extended their retreat today after German business confidence unexpectedly fell for a fifth-straight month in September to the lowest reading since February 2010. The Ifo institute in Munich said its business climate index, based on a survey of 7,000 executives, dropped to 101.4 from 102.3 in August. Economists predicted an increase to 102.5.Anglo American (AAL) sank 2.6 percent to 1,887.5 pence as base metals declined in London and after Bank of America Corp. and Citigroup Inc. both lowered their recommendations for the shares to neutral from buy.
Rio Tinto Group dropped 2 percent to 2,980 pence after Citigroup downgraded the world’s third-largest mining company to neutral from buy. Antofagasta Plc (ANTO) slid 1.3 percent to 1,260 pence and Kazakhmys Plc (KAZ) retreated 2.1 percent to 714 pence.
CGGVeritas slumped 5.3 percent to 24.44 euros after the world’s largest surveyor of oilfields agreed to buy Fugro’s seismic division to benefit from crude producers’ increased spending on offshore exploration. CGG will finance the deal through debt and a share sale. The company said that it will complete the transaction by the end of the year.
Fugro climbed 2.1 percent to 53.48 euros.
Credit Agricole SA (ACA) lost 2.4 percent to 5.71 euros after the Wall Street Journal reported that the French lender will probably need to inject as much as 700 million euros into Emporiki Bank SA before selling the business.
Qinetiq Group Plc (QQ/) rallied 6.5 percent to 182.9 pence for the biggest advance on the Stoxx 600. The defense technology company said its first-half performance was stronger than it had forecast.
Fiat SpA (F) climbed 2.5 percent to 4.60 euros after Chief Executive Officer Sergio Marchionne confirmed the carmaker’s 2012 financial targets.
U.S. stock futures fell as European leaders clashed on ways to stem the debt crisis and data from China and Germany signaled the slowdown is deepening.
Global Stocks:
Nikkei 9,069.29 -40.71 -0.45%Hewlett-Packard (HPQ) Mizuho Reiterated Neutral.
European stocks dropped as Germany and France disagreed on when to introduce a banking union for the 17-nation single currency.
German Chancellor Angela Merkel rejected French President Francois Hollande’s appeal to activate oversight of the banking union “the earlier, the better.” Deadlock over regulation may delay into next year a key building block in resolving the single currency’s debt crisis.
Speaking at a meeting on Sept. 22 near Ludwigsburg, Germany, Merkel said that the proposed banking union “has to be thorough, the quality has to be good and then we’ll see how long it takes.”
Anglo American retreated 2.6 percent to 1,888 pence after Bank of America Corp. downgraded the commodity producer to neutral from buy.
Rio Tinto Group, the world’s third-largest mining company, dropped 1.3 percent to 3,002 pence as copper fell, following its first weekly drop in three on the London Metal Exchange.
Syngenta AG gained 0.9 percent to 347.10 Swiss francs after the world’s largest agrochemicals company increased its target for sales in 2020 by $3 billion as it accelerates the introduction of new technology and benefits from a reorganization.
FTSE 100 5,819.68 -32.94 -0.56%
CAC 40 3,486.32 -44.40 -1.26%
DAX 7,402.45 -49.17 -0.66%
Asian stocks fell amid concern that talks among European leaders to resolve the region’s debt crisis are deadlocked, curbing the earnings outlook for the region’s exporters.
Nikkei 225 9,069.29 -40.71 -0.45%
S&P/ASX 200 4,385.5 -22.79 -0.52%
Shanghai Composite 2,038.33 +11.64 +0.57%
Canon Inc., a Japanese camera maker that gets 30 percent of its sales in Europe, slid 3.9 percent.
Rio Tinto Group, the world’s third-largest mining company, retreated 2.4 percent in Sydney as declining copper prices dragged raw-material shares lower.
Newcrest Mining Ltd., Australia’s biggest gold producer, slid 1.9 percent as JPMorgan Chase & Co. downgraded its recommendation on the shares.
Asian stocks rose, paring the regional benchmark index’s first weekly decline in three weeks, as Apple Inc.’s iPhone 5 debut boosted information technology shares and energy companies advanced on higher crude prices.
Nikkei 225 9,110 +23.02 +0.25%
S&P/ASX 200 4,408.3 +11.07 +0.25%
Shanghai Composite 2,026.69 +1.85 +0.09%
Samsung Electronics Co., a smartphone maker that gets 9 percent of its sales from Apple, gained 1.2 percent in Seoul as the new iPhone went on sale.
Inpex Corp., Japan’s No.1 energy explorer, advanced 2 percent as crude oil rebounded from a 7.2 percent drop in the past four days.
GrainCorp Ltd. rose 1.2 percent as JPMorgan Chase & Co. advised buying shares of eastern Australia’s largest grain handler.
European stocks rose to a one-week high after a report said that policy makers will next week unveil an economic reform program for Spain that will allow the country to seek a bailout.
Spanish Economy Minister Luis de Guindos is in talks with European Commission authorities to facilitate a new bailout program that will be presented Sept. 27, the Financial Times reported, citing unidentified officials involved in the discussions. The plan will focus on structural measures sought by the EU and not on new taxes or spending cuts, the FT said.
The yield on Spain’s 10-year bonds fell two basis points this week to 5.76 percent. It rose above the 6 percent mark in intraday trading earlier in the week.
National benchmark indexes advanced in 13 of the 18 western-European markets. Germany’s DAX gained 0.8 percent, France’s CAC 40 added 0.6 percent and the U.K.’s FTSE 100 was little changed.
Novo Nordisk climbed 1.3 percent to 917 kroner after UBS raised the rating on the shares to buy from neutral.
Devgen NV soared 69 percent to 15.89 euros, the biggest rally since it sold shares to the public in June 2005, after Syngenta AG offered to buy the company for 16 euros per share. That’s a 70 percent-premium to yesterday’s closing price of 9.43 euros.
Mediobanca SpA, Italy’s biggest publicly traded investment bank, gained 3.3 percent to 4.21 euros after UBS AG raised its share-price target to 4.1 euros from 3.5 euros and kept a neutral rating.
Major U.S. stock indexes could not hold scored on the opening.
Indexes rose in early trading amid reports that Spain was discussing a new plan to overcome the crisis and unlimited bond buying by the ECB in the negotiations with the European Union. Reported by the publication Financial Times.
It is expected that the plan will be announced on September 27 and will focus on structural reforms in the economy of Spain, at the request of the EU, not the new taxes and spending cuts.
However, later the deputy prime minister has denied the information which part: for example, Spain has no plans to freeze pensions, as stated in the source. In addition, German Finance Minister Wolfgang Schaeuble said that Spain does not need financial assistance to support in excess of the approved amount of its banks, as it is to the return of investor confidence.
Of the indices in the green could only stay Nasdaq, sponsored by the stock Apple Inc (AAPL, +0.20%). In turn, support the shares of AAPL has started selling iPhone 5.
In the composition of the index DOW components were mixed. Maximum loss suffered shares The Coca-Cola Company (KO, -1,58%).
Also showed mixed trends and key economic sectors. Sector showed the largest drop conglomerates (-0.6%). The leader is the health sector (+0.5%).
Biopharmaceutical company Vivus have fallen by 11.5%, after its representatives said that the European regulatory authorities may approve a new drug for the treatment of obesity.
Research in Motion fell 6.6%. According to the Vodafone Group, some BlackBerry users in Europe, the Middle East and Africa have lost access to email and the Internet, but the problem has been corrected.
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