Eurostoxx 50:2,959.21 (–24.06) Frankfurt DAX:7,181.12 (–42.18) Paris CAC:4.034.32 (–32.83)
EUROPEAN STOCKS dropped for a second day amid concern that rising energy costs following revolts in the Middle East and North Africa will hurt the global economy. Daimler led automakers lower, sliding 2.8 per cent.
Swiss Life Holding sank 3.3 per cent after Switzerland’s biggest life insurer reported operating profit that missed analysts’ estimates.
Celesio plunged 6.2 per cent as DZ Bank recommended selling the drug wholesaler’s shares.
“The news flow from the Middle East increases the risk premium,” said Lars Schickentanz, chief investment officer at Prima Sgr in Milan.
“The market will consolidate if no further oil spike occurs, and correct if oil spikes further.”
In Europe, producer-price inflation accelerated more than economists forecast in January as soaring energy costs added to the European Central Bank’s concerns that inflationary pressures are building.
Carmakers dropped the most among all industry groups in the Stoxx 600 as the shares of companies whose earnings are most tied to economic growth retreated.
Daimler, the world’s second biggest maker of luxury cars, fell 2.8 per cent to €49.6.
Essilor International dropped 3 per cent to €51.08 even after the world’s largest maker of lenses for glasses said it was targeting sales growth of 6 per cent to 8 per cent in 2011. Cheuvreux cut its rating to “underperform” from “outperform”, saying that while results were solid the upside was limited.
Neopost dropped 5.2 per cent to €65.80 even after Europe’s biggest maker of mailroom equipment said fourth-quarter sales rose 8.6 per cent to €261.1 million.
Verbund sank 6.9 per cent to €25.90, the largest drop on the Stoxx 600. Austria’s biggest utility said 2010 profit fell to €400.8 million from €644.4 million in 2009.
Bouygues advanced 3 per cent to €34.21. The French construction, television and telecommunications company said sales would increase by 2 per cent in 2011, after posting earnings for 2010 that beat analyst estimates.
Arkema surged 8 per cent to €57.78 as the maker of acrylics said it would meet its 2015 objectives. The company reported 2010 net income of €347 million, topping the average analyst estimate of €313 million. – (Bloomberg)
