Europe: Investors are forced to “wear the bearskin”
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Friday, February 5, the major stock markets of the European region have completed trades in a significant minus. The second session on end markets boggling news about possible budget problems in countries such as Portugal, Ireland, Spain and Greece, which prompted investors around the world to adhere to "bear" strategy. The cost of insurance against default on government1000bonds Spain, Greece and Portugal rose to record levels.
Statistics from Germany not brought anything positive. Industrial production in December fell by 2.6% m /m, while analysts had expected growth rate at 0.5%.
Doubts about the further development of the euro area economy resurfaced after the head of the ECB Jean-Claude Trichet, in his accompanying statement noted considerable uncertainty about the future that awaits the region"s economy.
As a result of trading a key index of the UK FTSE 100 fell 1.53%, French CAC 40 index sank 3.4%, while the German DAX closed in a minus on 1,79%. Regional Dow Stoxx 600 index weakened by 1.92% and closed at the level of 238.03 points.
Reduction in Commodities affected the downward trend, shares of commodity companies. Leading the world"s mining company BHP Billiton and rival Rio Tinto Group abated from its asset 1,56% and 1,87% respectively. Papers copper producers Antofagasta and Xstrata retreated to 0.42% and 5.19% respectively.
The third-largest in the UK supplier of natural gas BG Group said the fall of profit in the fourth quarter by 38% due to lower fuel prices. Net income in the period under review declined from 756 million pounds a year earlier to 465 million pounds ($ 731 million). As a result, quotes, BG Group went into minus on 3,22%.
Shares of the largest broker of interbank transactions ICAP "thinner" as much as 19.47% after it reported its forecasts for annual profit, which does not have pleased investors. It is expected that the annual profit reached 295 million - 315 million pounds, while analysts forecast a profit of 336 million pounds.
Paper French automaker Renault have become easier to 4.68% on lowering their rating analysts Royal Bank of Scotland Group to "buy" to "hold".
A leading manufacturer in the world of luxury goods LVMH Moet Hennessy Louis Vuitton lost the auction 3.96% of market capitalization. Net annual profit fell 13% to 1.76 billion euros ($ 2.42 billion) versus 1.78 billion expected by analysts euros.
The third-largest airline in Europe, British Airways said that net loss for April-December 2009 amounted to 245 million pounds compared with 127 million pounds a year earlier. This fact contributed 2,51% condom devaluing its shares.
The values of the basic indexes on closing are resulted in table:
| index | Country | Closing (items) | Variation day (items) | Change day (%) | value at the beginning of the year (the last closing in 2009) | Change YTD |
|---|---|---|---|---|---|---|
| ATX | Austria | 2,392.69 | -82.16 | -3.32% | 2495.56 | -4.12% |
| BEL20 Index | Belgium | 2,392.52 | -62.38 | -2.54% | 2511.62 | -4.74% |
| FTSE 100 | United Kingdom | 5,060.92 | -78.39 | -1.53% | 5412.88 | -6.50% |
| DAX Index | Germany | 5,434.34 | -98.9 | -1.79% | 5957.43 | -8.78% |
| IBEX 35 INDEX | Spain | 10,103.30 | -138.4 | -1.35% | 11940 | -15.38% |
| FTSE MIB | Italy | 20,815.88 | -588.94 | -2.75% | 23248.39 | -10.46% |
| AEX | Netherlands | 315.04 | -8.19 | -2.53% | 335.33 | -6.05% |
| OMX Nordic 40 | Scandinavia | 837.34 | -14.07 | -1.65% | 829.44 | 0.95 % |
| CAC 1940 | France | 3,563.76 | -125.49 | -3.40% | 3936.33 | -9.46% |
| SMI | Switzerland | 6,264.33 | -132.18 | 6545.91 | -4.30% |
An attempt to pass an important support level at 1,390 points, which failed last week, ended his breakdown at this
In the short term quotations may play a part of the lost positions, including those under the influence of technical factors
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