Volatile European Markets Drop in 2014; Greece Plunges 28%, Denmark Soars 21%

Nigel Thomas
31 Dec, 2014
New York City

Market indexes in Germany and U.K. drop more than 2% and indexes in France fell 0.5%. Greece and Italy led the region with a drop of more than 28%. Spain closed higher. Bwin.Party lowered its fiscal revenue guidance and the online gambling site operator is in talks to sell its social gaming business

[R]4:00 PM Frankfurt – Market indexes in Germany and U.K. drop more than 2% and indexes in France edged down 0.5%. Greece and Italy led the region with a drop of more than 28%. Spain closed higher. Bwin.Party lowered its fiscal revenue guidance and the online gambling site operator is in talks to sell its social gaming business.[/R]

European markets closed 2014 on a mixed note and averages in Germany, France, Spain and U.K. closed lower.

The dramatic fall in international oil price dragged the commodities heavy U.K. market indexes, Greek chaos reared its ugly head and bonds and stocks in Spain and Italy suffered, German market index dropped on the ongoing confrontation with Russia.

In London trading, FTSE 100 index gained 0.3% or 19.09 to 6,566.09 and in Paris, CAC 40 index increased 0.6% or 27.21 to 4,272.75.

For 2014, FTSE 100 index declined 2.7%, after rising 14.4% in 2013; DAX 30 decreased 2.9% after gaining 25.5% in the previous year and CAC 40 in Paris eased 0.5% after surging 18% in 2013.

Greece led the region with a loss of 29% followed by 27% decline in Portugal index and the index in Italy closed nearly unchanged.

Denmark led the euro zone and the European Union with a surge of 21% in 2014.

In Russia, the sharp plunge in oil price and the ongoing conflict with Ukraine dragged ruble down 41% and Micex Index tracking local stocks in Moscow gained in local currency but the dollar denominated RTS index declined 42.4%.

Asia Resource Minerals Plc surged 490.4% to 24.50 pence after the thermal coal producer won legal arbitration tribunal in Singapore and force a former director Rosan Roeslani to pay back £110 million or $173 million plus accrued interest and legal costs.

Bwin.Party Digital Entertainment Plc gained 1.4% to 117.80 pence after the U.K.-based online gaming company forecasted total revenues in the fourth-quarter in the range of €608 million to €612 million and operating earnings margin between 16% and 17% on weak gross margin in sports betting segment.

For the fiscal 2013 total revenues for the group was €652.4 million.

The company is in talks with a number of potential suitors for its social gaming business.

Castleton Technology Plc plunged 10.5% to 2.06 pence after the software and consultancy service provider said revenues in the first-half ending on September were £1.9 million from a year ago period.

Net profit in the period tumbled 98.9% from a year ago to £0.28 million compared to £26.4 million and diluted earnings per share declined to break even from 4.24 pence.

During the quarter, the company disposed its proprietary software business ""last in a series of business disposals"" ABS, for about £750,000.