Greece Worries Rattle European Markets

Mayank Mehta
12 Jan, 2010
New York City

Markets in Europe were rattled after EU regulators said deficit statistics of Greece are unreliable. National Bank of Greece dropped 6.3%. Beiersdorf, the German consumer products maker declined after it missed earnings outlook. EADS declined after it reported revenues decline on weak dollar.

[R]7:00 PM Frankfurt, Paris; 1:00 PM New York – Markets in Europe were rattled after EU regulators said deficit statistics of Greece are unreliable. National Bank of Greece dropped 6.3%. Beiersdorf, the German consumer products maker declined after it missed earnings outlook. EADS declined after it reported revenues decline on weak dollar.[/R]

European market indexes declined after the European Commission voiced its serious concerns about the statistical accuracy of Greek budgetary data. The benchmark index in Athens plunged 5% and market sentiment in the region soured.

Greek president said that Greece is committed to lowering budget deficit to 3% of gross domestic product by 2012, as set out by the EU regulators.

In London FTSE 100 Index closed lower 39.36 or 0.71% to 5,498.71, in Paris CAC 40 Index decreased 43.04 or 1.06% to close at 4,000.05, in Frankfurt DAX index lower 97.50 or 1.61% to close at 5,943.00. In Zurich trading SMI decreased 50.36 or 0.76% to close at 6,541.90.

Greece is fighting to cut its deficit of 12.7% of gross domestic product with the help of International Monetary Fund and EU regulators. EU President Herman Van Rompuy met with Prime Minister George Papandreou in Athens and expressed his worries that Greece is a concern for the entire EU region of 27 nations.

Gainers & Losers

Accor SA decreased 1.6% to €36.99 and Axa SA the insurer rose 0.04% to €24.84.

Beiersdorf AG dropped 2.8% to €43.92 after the cosmetics company said full-year sales fell 3.7% to €5.75 billion from €5.97 billion a year ago. Net profit in the full-year fell 33% to €379 million compared to net profit of €567 million a year ago.

Cafom SA the retailer of home furnishings increased 8.5% to €10.75.

Cegedim SA rose 0.6% to €58.90 and the sales-tracking software for drug makers today announced the acquisition of U.S. healthcare data provider, SK&A Information Services, Inc.

Deutz AG slipped 1.0% to €3.30 after the engine maker was upgraded to “neutral” from “sell” at Goldman Sachs Group Inc.

E.ON AG the power and gas company fell 0.4% to €29.23.

HeidelbergCement AG fell 0.8% to €51.06 after the cement maker announced that it will issue new bonds to be sold in two tranches, each with a minimum of €500 million with maturities until August 2015 and April 2020.

JC Decaux SA rose 2.4% to €18.65 after the seller of outdoor advertising was upgraded to “equal-weight” from “underweight” at Morgan Stanley.

Lagardere SCA fell 0.9% to €27.88 and the publisher was downgraded to “underweight” from “equal-weight” at Morgan Stanley.

Metro AG the retailer rose 0.9% to €41.63.

Octo Technology SA the computer-consulting company increased 1.6% to €5.06.

OHB Technology AG dropped 4.7% to €14.69 after the aerospace company was downgraded to “neutral” from “overweight” at HSBC Holdings Plc.

Pernod Ricard SA climbed 0.7% to €58.97 after the drinks company was upgraded to “neutral” from “underperform” at Credit Suisse Group AG.

PSB Industries SA the plastics and packaging company added 1.1% to €17.20.

Qiagen NV fell 0.03% to €15.56 after the Dutch biotechnology company today announced that it has acquired Germany based ESE GmbH, a privately held maker of UV and fluorescence optical measurement devices for $19 million in cash.

Rhoen-Klinikum AG the hospital operator rose 0.09% to €17.19.

SGL Carbon SE rose 6.0% to €23.95 after the maker of carbon and graphite products was upgraded to “buy” from “neutral” at Goldman Sachs.

ThyssenKrupp AG the steelmaker fell 1.0% to €27.10.

Tognum AG slipped 3.5% to €12.61 after the diesel-engine maker was downgraded to “neutral” from “buy” at Goldman Sachs.

Vivalis SA rose 0.7% to €10.05 after the biopharmaceutical company announced that it has acquired Humalys SAS, a private French biotech research and development company, based in Lyon, specialized in the generation of human monoclonal anti-bodies.

Volkswagen AG the carmaker dropped 1.1% to €75.21.

DAX Index Movers

Commerzbank AG led the decliners in the DAX index of 4.56%, followed by losses in BASF SE of 3.76%, in Infineon Technologies AG of 3.73%, in K+S AG of 3.62%, and in Adidas AG of 3.60%.

Henkel AG led gainers in the DAX index with a rise of 1.28% followed by increase in Muenchener Rue AG of 0.37%.

CAC-40 Index Movers

Credit Agricole SA led the decliners in the CAC-40 index of 3.47%, followed by losses in Vallourec SA of 3.20%, in Technip of 3.05%, in Alstom SA of 3.02%, and in Michelin SCA of 2.92%.

Pernod Ricard SA gainers in the CAC-40 index with a rise of 1.33% followed by gainers in Danone SA of 0.61%, in France Telecom S.A. of 0.32%.