European stocks decline on Italy concerns; Dax down 0.40%
Published Dec 10, 2012 03:58AM ET
During European morning trade, the EURO STOXX 50 slumped 0.49%, France’s CAC 40 retreated 0.52%, while Germany’s DAX 30 dropped 0.40%.
Sentiment was hit after Mario Monti announced that he will resign as soon as he has passed a key budget law, as members of former Prime Minister Silvio Berlusconi’s party withdrew their support for the government.
Markets were also jittery after Germany’s Bundesbank cut its forecast for growth on Friday and warned that the economy could enter a recession as a result of the debt crisis.
Separately, data showed that China's trade surplus narrowed more-than-expected in November, sparking fresh concerns over the perspective for growth in the world's second largest economy.
Financial stocks were broadly lower, as shares in French lenders BNP Paribas and Societe Generale tumbled 2.91% and 1.74%, while Germany's Deutsche Bank and Commerzbank declined 2.03% and 1.64% respectively.
Peripheral lenders also posted sharp losses, with Italian banks Unicredit and Intesa Sanpaolo plunging 4.61% and 5.62%, while Spain's BBVA and Banco Santander retreated 2.28% and 2.53%.
Elsewhere, RWE AG tumbled 2.05% as Bank of America Corp. downgraded the German utility.
On the upside, France-based STMicroelectronics surged 5.04% after saying it will exit its joint venture with Ericsson AB.
In London, FTSE 100 slipped 0.18%, as U.K. lenders tracked tjeir European counterparts lower.
Shares in Lloyds Banking dipped 0.04% and HSBC Holdings dropped 0.64%, while the Royal Bank of Scotland and Barclays retreated 0.87% and 1%.
Mining stocks added to losses, as BHP Billiton tumbled 0.95%, while copper producers Xstrata and Kazakhmys declined 0.02% and 0.34%.
In the U.S., equity markets pointed to a lower open. The Dow Jones Industrial Average futures pointed to a 0.20% fall, S&P 500 futures signaled a 0.26% loss, while the Nasdaq 100 futures indicated a 0.32% decline.
Also Monday, official data showed that French industrial production fell unexpectedly in October, slipping 0.7% after a 2.7% decline the previous month.
Analysts had expected industrial producion to rise 0.3% in October.
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Written By: Investing.com
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