Sun, Jul 20, 2014 - Page 15 News List

Escalating Ukraine tensions pull stocks down across Europe

Bloomberg

Most European stocks fell, even as the benchmark index completed a weekly advance, amid concern that the conflict between Ukraine and Russia is deepening.

The STOXXX Europe 600 Index lost less than 0.1 percent to 339.66 at the close in London as three stocks fell for every two that rose.

The equity benchmark slid 0.9 percent on Thursday after Ukraine said that pro-Russian separatists shot down a Malaysia Air jet near the town of Torez. The gauge still gained 0.8 percent this week.

National benchmark indices fell in 11 of the 18 Western European markets. The UK’s FTSE 100 added 0.2 percent, France’s CAC 40 gained 0.4 percent and Germany’s DAX declined 0.4 percent.

Air France-KLM and Ryanair Holdings PLC led a retreat among European travel stocks.

Air France-KLM lost 2.1 percent to 8.59 euros, Deutsche Lufthansa AG slid 1.1 percent to 14.45 euros and Ryanair declined 1.9 percent to 6.73 euros.

A gauge of auto industry companies posted the worst performance among the 19 industry groups in the STOXX 600.

Volvo AB fell 5.4 percent to 87.30 kronor on Friday, the most since October last year. The world’s second-largest truckmaker reported second-quarter earnings before interest and taxes of 3.56 billion kronor (US$521 million), missing the 4.28 billion kronor average estimate of analysts in a Bloomberg survey.

Schibsted ASA declined 6.1 percent to 309 kroner after Norway’s biggest media group reported second-quarter earnings before interest, taxes, depreciation and amortization of 574 million kroner (US$93 million), missing the average estimate of 611 million kroner. Friday’s drop was the biggest since August 2011 for Schibsted.

Daimler AG declined 1.7 percent to 65.40 euros. Michelin & Cie., Europe’s biggest tiremaker, lost 1 percent to 85.41 euros.

Shire PLC rose 4 percent after AbbVie Inc agreed to buy the drugmaker for £52.48 (US$89.80) a share, while Ericsson AB posted the biggest rally since April 2011 after reporting a profit margin that beat forecasts.

AbbVie’s cash-and-stock deal values Shire at 53 percent above its closing price on May 2, before the US drugmaker made its first proposal, according to a statement. The combined company will cut their tax rate to about 13 percent from 22 percent.

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