Sun, Sep 02, 2012 - Page 15 News List

European stocks decline for second week

Bloomberg

European stocks declined for a second week, the first back-to-back losses since May, as economic data from Japan to Germany added to evidence that global growth is slowing.

Rio Tinto Group and PSA Peugeot Citroen led gauges of mining companies and automakers lower, with both companies falling at least 6 percent. Hays PLC tumbled the most in a year after the recruiter said several markets are “likely to remain very challenging” next year. Vestas Wind Systems A/S posted the biggest gain on the STOXX Europe 600 Index, surging 25 percent.

The benchmark STOXX 600 lost 0.7 percent to 266.23 this past week, trimming its advance last month to 1.9 percent. The gauge has climbed 14 percent from this year’s low on June 4 amid speculation central banks around the world will take further measures to support the economy.

“We don’t see much of a turning point for growth immediately,” said Kevin Gaynor, a London-based strategist at Nomura Holdings Inc in London. “While we think the financial market impact of the euro-area’s problems have played out, we think the global economic impact has yet to be fully felt as these influences have a longer lag.”

In Europe, German unemployment rose for a fifth straight month last month, while economic confidence in the euro area dropped to a three-year low.

Spain’s IBEX 35 climbed 3.1 percent even as three Spanish regions sought bailouts from a central-government rescue fund. German Minister of Finance Wolfgang Schaeuble said that Germany and France would seek to develop common proposals on a fiscal, banking and monetary union after a meeting in Berlin with French Minister of Finance Pierre Moscovici.

This story has been viewed 1942 times.
TOP top