Sun, Jun 12, 2011 - Page 10 News List

European stocks drop as EU mulls Greek overhaul

WEDDINGS, DISASTERS:Manufacturing output in the UK took a beating in April as workers took a day off for the royal wedding and parts from Japan were delayed

AFP, LONDON

Europe’s stock markets headed south in midday trade on Friday as the EU said it was studying a possible Greek debt “rescheduling.”

Prior to the announcement, markets had been mostly rising as investors digested weak British manufacturing data, as well as the auto sector after Toyota unveiled a disappointing profits forecast. International backers of a second bailout plan to ward off the threat of Greece defaulting on its massive debts are now studying a possible “rescheduling,” the European Commission said on Friday.

In reaction in London, the benchmark FTSE 100 index of top shares fell 0.31 percent to 5,838.76 points. The index was also weighed down by official data showing British manufacturing output slid 1.5 percent in April compared with activity in March.

Frankfurt’s DAX 30 eased 0.10 percent to 7,153.25 points and in Paris the CAC 40 index fell by 0.61 percent to 3,855.08 points.

The STOXX 50 index of leading eurozone companies shed 0.37 percent to 2,767.97 points.

British manufacturing output was hit in April by the royal wedding and Japan’s tsunami disaster. Workers were given a day off on April 29 to celebrate the wedding of Prince William and Kate Middleton, while Japan’s natural disaster meant vital parts could not be sent abroad to Britain, hitting production.

Manufacturing output is suffering across the West as factories produce less amid slack demand for goods.

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