Log in
Login
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 

4-Traders Homepage  >  News

News

Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesHot NewsMost Read NewsRecomm.Business LeadersCalendar 

EUROPE MARKETS: Europe Stocks Drop As Unemployment Hits New High

share with twitter share with LinkedIn share with facebook
share via e-mail
0
03/01/2013 | 06:18pm CEST

By Sara Sjolin, MarketWatch

LONDON (MarketWatch) -- Upbeat U.S. manufacturing data helped European stock markets pare losses on Friday, after record high unemployment in the euro zone and weak business-activity data in China had kept bourses mired in deep red for most of the day.

The Stoxx Europe 600 index lost 0.3 % to close at 289.02, but gained 0.2% on the week, marking the second weekly gain in a row.

The index earlier this week found itself losing as much as 1.3% on the back of inconclusive election results in Italy. On Thursday however, European markets concluded February with a ninth straight monthly gain, as global central bankers signaled they would stick to current easing policies.

"One of the big take aways this week is to take a longer-term view of the markets. It's a question of looking at the long game and understand whatever may happen on a daily basis may not change anything from a company view," said Richard Hunter, head of equities at Hargreaves Lansdown.

"I'm still optimistic about the prospects for the end of the year and from a micro perspective there are still companies that continue to outperform," he added.

Pointing in the other direction on Friday, however, mining firms posted some of the biggest losses as a gauge of Chinese factories showed the manufacturing sector expanded at a slower pace in February.

The government-sponsored version of the manufacturing Purchasing Managers Index came in at 50.1, only marginally ahead of the 50-point threshold that signals an expansion. The figure marked a decline from January's 50.4-point level and missed expectations for 50.5 in a Dow Jones Newswires survey. See: China manufacturing grows marginally, surveys show

Shares of Rio Tinto PLC (>> Rio Tinto plc) lost 2.8%, Anglo American PLC (>> Anglo American plc (ADR)) fell 1.1% and BHP Billiton PLC (>> BHP Billiton Limited) slipped 0.4%.

Euro-zone data

Data out of the euro zone were also disappointing, with the region's unemployment rate jumping to 11.9% in January, a record and above expectations of a 11.8% reading.

Additionally, the final reading of Markit's purchasing-managers index showed the euro zone remained in contraction territory in February. The index printed at 47.9, up from a flash reading of 47.8. See: Weak euro-zone data spark speculation of ECB rate cut

Investors also looked to the U.S., where automatic spending cuts, referred to as the sequester, were slated to take effect on Friday, after bills from both the Democrats and the Republicans failed to get enough support in the Senate on Thursday. See: Sequester cuts near as Senate bills fail

Also of interest in the U.S., the manufacturing sector accelerated to the highest level in almost two years with the Institute for Supply Management's manufacturing index climbing 1.1 points to 54.2%, coming in ahead of expectations of a 52.5% reading. See: Manufacturing sector revs up in February

Meanwhile, the University of Michigan-Thomson Reuters consumer-sentiment gauge rose to a final February reading of 77.6 -- the highest level since November. See: Consumer sentiment at three-month high in February

"With the recent economic data being ahead of expectations and corporate data surprising to the upside, most of the dip buying we have seen has been led by long term investors," said Atif Latif, director of trading at Guardian Stockbrokers, in emailed comments.

"They still understand in the search for yield the equity market offers more upside than the negative real rate of return from the fixed income market."

U.S. stocks traded lower on Wall Street. See: Stocks moderate drop after manufacturing data

Banks decline

In Europe, banks found themselves among the biggest decliners. In the U.K., Lloyds Banking Group PLC (>> Lloyds Banking Group PLC) fell 2.2%, after posting a loss for 2012. The result was hit by extra provisions in the fourth quarter to cover potential claims from people who were wrongly sold insurance products, known as PPI. See: Lloyds hit by further PPI charges

Glencore International PLC (>> Glencore International Plc) erased 2.7%, after the commodities titan said it won't be able to complete its proposed merger with mining company Xstrata PLC by March 15, as intended. Xstrata shares fell 3.1%. See: Glencore-Xstrata merger won't be complete by March

The FTSE 100 index , however, closed 0.3% higher at 6,378.60 and was up 0.7% on the week.

Shares of Old Mutual PLC gained 4.4%. The financial group posted an increase in 2012 profit and set aside 5 billion rand ($561.8 million) to invest in Africa over the next three to five years. See: Old Mutual posts rise in profit, focus on Africa

Germany's DAX 30 index erased 0.4% to 7,708.16, with shares of Deutsche Bank AG (>> Deutsche Bank AG (USA)) 4.3% lower after Goldman Sachs cut the bank to sell from neutral. The German benchmark closed out the week 0.6% higher. See: Deutsche Bank down 6%, downgraded by Goldman Sachs

Outside the main index in Frankfurt, shares of Metro AG dropped 4.9%, after the retailer cut its dividend payments for 2012. See: Metro cuts dividend payments for 2012

France's CAC 40 index fell 0.6% to 3,699.91, sending it 0.2% lower on the week. Shares of Société Générale SA lost 2.6% and Credit Agricole SA erased 2.4%.

Elsewhere, Belgacom SA slumped 5.6%, as Belgium's largest telecom firm forecast lower sales and earnings in 2013 due to firm competition. See: Belgacom sees weaker earnings on more competition

share with twitter share with LinkedIn share with facebook
share via e-mail
0
React to this article
Latest news
Date Title
12:34a BERKSHIRE HATHAWAY : discloses unit's ties to Iran, opens probe
12:33a SAMARCO MINERAÇÃO : Bento Rodrigues community will vote on new town site this Saturday
12:31a COHEN & STEERS : Announces Change in Global Realty Majors Portfolio Index
12:31a TREE ISLAND STEEL : Announces 2016 Annual Meeting Results and Election of Directors
12:30a TREE ISLAND STEEL : Announces 2016 Annual Meeting Results and Election of Directors
12:29a PIVOTAL THERAPEUTICS : Announces Cease Trade Orders and Provides Corporate Update
12:29a HORIZON NORTH LOGISTICS INC. : announces the final annual general meeting board of director election results
12:28a BM&F BOVESPA : Notice to the Market - Market Performance - April 2016
12:26a STUART OLSON : Responds to the Regional Municipality of Wood Buffalo (RMWB) Wildfire Crisis
12:25a SALES OF NEW RAM PICKUP TO BEGIN BY JAN 2018 : Fiat Chrysler CEO
Latest news
Advertisement
Hot News 
DS HEALTHCARE GROUP, INC. : Changes in Registrant's Certifying Accountant, Financial Statements and Exhibits (form 8-K)
KEMPHARM, INC : Other Events, Financial Statements and Exhibits (form 8-K)
INTERSECT ENT : reports 1Q loss
DGAP-NEWS : Muehlhan AG: First quarter results of 2016 (news with additional features)
Endo Cuts Annual Guidance on Impairment Charge
Most Read News
06:03p NORTHVIEW APARTMENT REIT : Announces Voting Results from 2016 Annual General & Special Meeting of Unitholders
06:20p San Diego's Florence Griffith Joyner Elementary School Receives $5,000 Barona Education Grant
06:10p Lotus Bio-Technology Corporate Update
06:23p MCLANE : Harbor Petroleum Scales Down, Sells Dealer Business
06:23p MCLANE : Exxon Experiments With Fuel Cell Energy
Most recommended articles
01:53aDJARCELORMITTAL : Broadly Inline Says Jefferies -- Market Talk
05/03DJUBS Shares Drop As Profit Slumps
06:34p BERKSHIRE HATHAWAY : discloses unit's ties to Iran, opens probe
06:25p SALES OF NEW RAM PICKUP TO BEGIN BY JAN 2018 : Fiat Chrysler CEO
06:05p Loophole in U.S. shell company rule could spur misconduct - groups