European Markets Consolidate

Mayank Mehta
22 Feb, 2010
New York City

European market indexes declined after gaining for a week. Lufthansa canceled two thirds of its flights. Banks and the benchmark index in Greece rebounded on central bank governor comments. Drugmakers declined after U.S President proposed fees.

[R]8:00 PM Frankfurt, 2:00 PM New York – European market indexes declined after gaining for a week. Lufthansa canceled two thirds of flights. Banks and the benchmark index in Greece rebounded on central bank governor. Drugmakers declined after U.S President proposed fees.[/R]

European markets closed lower after a week of gains on the improving economic sentiment and better than expected earnings in Europe and in the U.S.

In London FTSE 100 Index closed lower 6.10 or 0.11% to 5,352.07, in Paris CAC 40 Index decreased 12.84 or 0.34% to close at 3,756.70, in Frankfurt DAX index lower 33.61 or 0.59% to close at 5,688.44. In Zurich trading SMI decreased 22.27 or 0.33% to close at 6,687.41.

The ASE Index in Greece increased 1.5% after the Greek central bank governor George Provopoulos asserted that the government will deliver on its “ambitious” deficit reduction plan from 12% to 3% in less than three years.

Stock Movers

Banks in Greece rebounded after the comments from the central bank governor. Alpha Bank SA surged 4.3% to 7.01 euros, National Bak of Greece SA soared 4.4% to 14.61 euros and EFG Eurobank Ergasias SA added 2.8% to 5.80 euros.

Bilfinger Berger AG dropped 6% to 50.75 euros after the company said it will investigate its railroad project in Cologne that may increase costs. The news was first reported on Bloomberg.

Carrefour SA decreased 2.4% to 34.09 euros after Exane BNP Paribas lowered its view on the large format retailer.

Drugmakers declined after U.S. President Barack Obama proposed to raise fees on drug companies to lower the cost of government healthcare plan.

Novartis AG decreased 1.3% to Sfr 59.1 and Roche Holdings AG dropped 1.3% to Sfr 181.70.

Deutsche Lufthansa AG declined 1.7% to 10.99 euros after the company canceled nearly two thirds of its flights.

Pilots union struck and conducted four day walkout and asked the company not to use flights and crews of the newly acquired company. Lufthansa said that the strike will cost additional 25 million euros a day.

Hochtief AG declined 2.1% to 5404 euros after its Pension Trust plans to sell as much as 2.1 million shares in the open market.

Inditex SA decreased 2.5% to 42.58 euros on a downgrade from Exane BNP Paribas.

Salzgitter AG increased 0.9% to 66.80 euros on the media speculation that China Steel Corp may acquire a stake in the company.

DAX Index Movers

Diamler AG led the decliners in the DAX index of 2.27%, followed by losses in Fresenius SE of 1.59%, in Deutsche Lufthansa AG of 1.21%, in Linde AG of 1.15%, and in SAP AG of 1.08%.

Commerzbank AG led gainers in the DAX index with a rise of 3.69%, followed by losses in Volkswagen AG of 2.66%, in Deutsche Boerse AG of 1.23%, in Infineon Technologies AG of 1.09%, and in Muenchener Rue AG of 0.87%.

CAC-40 Index Movers

PSA Peugeot Citroen S.A. led the decliners in the CAC-40 index of 2.95%, followed by losses in Pernod Ricard SA of 2.60%, in Carrefour SA. of 2.39%, in Accor SA of 2.03% and in PPR SA of 1.57%.

Alcatel Lucent gainers in the CAC-40 index with a rise of 5.10%, followed by gainers in Technip of 2.20%, in Societe Generale SA of 2.07%, in BNP Paribas SA of 1.64% and in Cap Gemini SA of 0.96%.