European Mining Stocks Take Another Hit on China Slowdown

Nigel Thomas
10 Nov, 2015
New York City

European markets continued to decline on Tuesday after commodity prices fell and the political turmoil in Portugal. Alstom and GE secured a $5.6 billion contract from Indian Railways. Netherlands sells 23% of the ABN AMRO bank. Vodafone net swung to a loss of

[R]4:00 PM Frankfurt – European markets continued to decline on Tuesday after commodity prices fell and the political turmoil in Portugal. Alstom and GE secured a $5.6 billion contract from Indian Railways. Netherlands sells 23% of the ABN AMRO bank. Vodafone net swung to a loss of £1.6 billion.[/R]

Stock markets in Europe traded in negative territory as the political crisis in Portugal continues, while mining stocks plunged due to weaker demand from China and falling copper prices.

The possibility for a left-wing coalition replacing the centre-right government in Portugal is strongly opposed by entrepreneurs and investors in Portugal.

The developments in Portugal may indirectly affect the upcoming elections in neighbouring in Spain and the entire Euro zone.

In London trading, FTSE 100 index slipped 41.90 or 0.7% to 6,253.06 and in Frankfurt the DAX index decreased 52.31 or 0.5% to 10,763.82.

In Paris, CAC 40 index dropped 33.52 or 0.7% to 4,877.65.

Alstom SA slipped 0.7% to €29.09 after the France-based rail transport equipment maker and General Electric Co secured a contract worth about $5.6 billion from the Indian Railway Ministry to supply the country''s state-owned railroad company with electric locomotives.

The Dutch government plans to offer 216.2 million shares of the state-owned ABN AMRO Bank N.V, or 23% of the total stock, at €16 to €20 per share.

The goal is to raise as much as €4.6 billion from the IPO and to recoup some of the billions of euros the government spent to protect the bank from bankruptcy seven years ago.

Deutsche Wohnen AG increased 0.4% to €23.96 after the Germany-based residential property developer said group profit in the nine-month period ending in September surged 260% from a year ago to €521.7 million.

The company is making efforts to fight a hostile bid by rival German property company Vonovia.

ITV Plc gained 0.9% to 259.10 pence after the U.K.-based broadcasting company stated total revenues for the nine-month period ending in September soared 13% from a year ago to £2.05 billion.

Chief Executive Adam Crozier said ITV will increase its broadcasting revenues by the acquisition of the Northern Irish channel UTV for about £100 million.

Lagardere SCA increased 1.9% to €27.15 after the France-based diversified media company reported total revenues profit in the nine-month period ending in September declined 3% from a year ago to €1.85 billion mainly due to deconsolidation.

Vodafone Group Plc soared 4.5% to 224.09 pence after the U.K.-based mobile company reported better-than-expected revenues for the second quarter and increased its operating profit forecast for the year.

In the first-half of the year ending in September, revenues declined 2.3% to £20.27 billion, compared to the previous year.

Net in the period swung to a loss to £1.58 billion, compared to profit of £5.50 billion.

The company lifted its operating profit forecast for the year to a range of £11.7 billion and £12 billion from an earlier estimate of £11.5 billion to £12 billion.

Wolseley Plc declined 4.8% to 3,623.80 pence after the U.K.-based plumbing and heating products maker said it expects difficulties in the industrial markets in North America.

Revenues for the first-quarter ending in September jumped 5.3% from a year ago to £3.56 billion and trading profit increased 6% to £250 million.

Sales in the U.S. and U.K. increased 5.6% and 1.2%, respectively; sales in Canada and Central Europe dropped by 2.7% and 1.4%, respectively, while sales in the Nordic region jumped 2.9%.