Greece, Portgual, Spain Lead Decliners in Europe

Mayank Mehta
21 Apr, 2010
New York City

European markets closed lower as Greece negotiated terms of emergency loans with the EU and the IMF. Market indexes in Greece, Portugal and Spain fell sharply after the IMF voiced its concern about the rising sovereign debts. Accor sales beat estimates on revival of hotel demand. VW net soars 95%.

[R]7:00 PM Frankfurt, Paris; 1:00 PM New York – European markets closed lower as Greece negotiated terms of emergency loans with the EU and the IMF. Market indexes in Greece, Portugal and Spain fell sharply after the IMF voiced its concern about the rising sovereign debts. Accor sales beat estimates on revival of hotel demand. Volkswagen profit climbs 95%.[/R]

European market indexes were on the defensive after Greece and the EU-IMF officials negotiated details of the emergency loans. Market indexes in Greece, Spain and Portugal led the decliners in the region as investors focus on rising debt burdens of these nations.

Greece’s Finance Minister George Papaconstantinou was optimistic that his country would overcome the current fiscal crisis and said to reporters yesterday “whether borrowing from the market or borrowing from our partners” the nation will be able to rollover its debt scheduled by the end of next month.

The ASE Index declined 1.4%, the PSI-20 index fell 1.5% and the IBEX 35 index in Madrid dropped 1.7%.

More Flights Permitted in Europe

Air travel in Europe revived after London’s Heathrow Airport opened after an agreement between the U.K. and airplane makers and engine designers regarding the testing of flights while passing through the thin air above 20,000 feet.

Regulators are worried that volcanic ash cloud containing glass and silica particles may damage engines in mid-air.

While the air traffic is slowly returning to normal levels in the northern Europe, 7,000 flights are canceled today according to the Eurocontrol, the agency responsible to monitor air travel in the region.

In London FTSE 100 Index closed lower 42.24 or 0.73% to 5,741.45, in Paris CAC 40 Index decreased 22.86 or 0.57% to close at 4,003.79, in Frankfurt DAX index lower 9.75 or 0.16% to close at 6,254.48. In Zurich trading SMI decreased 21.31 or 0.31% to close at 6,820.60.

Gainers & Losers

Accor SA added 2.4% to €43.67 after the hotelier said first quarter sales rose 3.1% to €1.67 billion from €1.62 billion a year ago.

Air France-KLM rose 0.8% to €12.27 and the French Environment Minister Jean-Louis Borloo said the country aims to operate 100% of long-haul flights and 60% of medium-haul routes tomorrow as air travel in the northern Europe revives and nearly 70% of flights are operating on schedule.

Aufeminin.com SA the operator of Internet sites targeted at women gained 8.5% to €14.70.

EADS NV fell 0.03% to €14.63 after the Boeing Co and the North American unit of Airbus parent is competing for a U.S. Air Force refueling plane contract worth up to $50 billion.

Fiat SpA declined 3.2% to €10.08 an automobile manufacturer said first quarter revenues rose 15% to €12.9 billion from €11.3 billion a year ago. Net loss for the quarter was €21 million or €0.02 per diluted share compared to net profit of €410 million or €0.33 per share a year ago.

Gemalto NV fell 1.9% to €32.49 after the smartcard maker was downgraded to “neutral” from “conviction buy” at Goldman Sachs Group Inc.

Heineken N.V decreased 2.0% to €36.50 after the brewer said first quarter revenues fell 3.6% to €2.94 billion from €3.05 billion a year ago.

Parrot SA rose 3.0% to €12.00 after the designer of embedded speech-based applications was upgraded to “neutral” from “sell” at Goldman Sachs.

PSA Peugeot Citroen S.A added 2.7% to €23.51 after the automaker posted first quarter

Robertet SA added 2.1% to €95.46 after the producer of flavors and additives for the cosmetics and food industries said 2009 revenues rose 0.6% to €305.1 million from €303.2 million a year ago. Net profit for the year rose 8.5% to €14.4 million compared to net profit of €13.3 million a year ago.

SolarWorld AG rose 0.7% to €11.44.

Spir Communication SA the publisher of classified-ad newspapers and leaflets slipped 4.8% to €21.41.

Tele2 AB the telecommunications operator said first quarter revenues fell 3% to SEK9.54 billion from SEK9.83 billion a year ago. Net profit for the quarter rose 91% to SEK1.27 billion or SEK2.86 per diluted share compared to net profit of SEK663 million or SEK1.50 per share a year ago.

Volkswagen AG added 1.8% to €74.99 an automobile manufacturer said first quarter revenues rose 19.4% to €28.6 billion from €24.0 billion a year ago. Net profit for the quarter rose 95% to €473 million compared to net profit of €243 million a year ago.