FTSE: instability of the new Europe

Stock market indexes in Europe remains under pressure

In brief: A lot of financial problems of the Old World began to whip for the stock market in Europe. Economy of Germany is going through hard times.

On Friday, May 21, the major stock markets of the European region have shown mixed dynamics. Investors remained concerned about the unstable situation in Europe and the lack of a unified position in the government on how best way to solve the problem of the debt crisis in the single euro zone. Analysts said Deutsche Bank, in the case of the failure of the stabilization program established by the EU, the picture is seen quite negative, including the possibility of a second wave of recession.

According to EPFR, during the week ending May 19 investors have pulled about $ 12 billion from the funds of the European and U.S. shares, which was the highest in the last two years meaning. Released statistics for Germany bore multidirectional nature. IFO index of business optimism in May amounted to 101.5 points compared with 101.6 points a month earlier and 102.0 points expected by analysts. But the figures for GDP slightly pleased investors – according to final figures, GDP growth in the first quarter amounted to 0,2% / K, while the quarter was previously observed decline by 3,8%. Today I have also published data on the UK budget deficit, which reached a record in April since 1993 levels, reaching 10 billion pounds ($ 14.4 billion) compared with 8.8 billion pounds a year earlier. As a result of trading a key indicator of the UK FTSE 100 fell by 0,2%, French CAC 40 index dropped to 0.05%, while the German DAX was easier to 0,66%. Regional index STXE 600 weakened by 0.52%, closing at 237.04 points. Papers Scandinavian insurer TrygVesta retreated during the session at 9.38% after it reported that an impairment in the first quarter of $ 102 million kroner ($ 17 million), compared with a profit of 42 million kroons, expected by analysts. The operator of stock exchanges London Stock Exchange announced a 19% Mr. falling earnings per share for the year ending in March, which led to 1% condom depreciation of its securities.

Significant role in the attenuation of investor interest in shares of several European companies have played a recommendation of analysts. Europe’s leading producer of potassium K + S abated from its asset 2.84% after its stock rating was downgraded from “better market” to “worse than the market,” analysts Cheuvreux. A similar fate overtook the German paper manufacturer of sports cars Porsche, lost her bid for 1.89% of market capitalization. Analysts Goldman Sachs Group decided to reduce the rating of its shares to “buy” to “neutral”, expecting limited growth in the sector. Meanwhile, the broker also recommended selling shares of MAN, the third largest European manufacturer of trucks, which quotes on the background of news left in a minus on 0,89%.

Anrey Torbinski
2010-05-21 18:21, Economics.

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