Eurostoxx 50: 2,670.37 (–22.39) Frankfurt DAX: 7,158.77 (–31.29) Paris CAC: 3,672.77 (–39.89)EUROPEAN STOCKS slid yesterday, extending their weekly drop, as US politicians called off a vote on a Republican plan to increase the nation's debt ceiling and growth in the world's largest economy trailed forecasts.
The Stoxx Europe 600 lost 0.6 per cent in London, extending this week’s drop to 2.4 per cent.
Moody’s placed Spain’s Aa2 credit rating on review for a possible downgrade because of funding pressure and challenges faced by regional governments to meet their budget targets.
The gauge has fallen 2.7 per cent in July as concern mounted that US politicians will fail to agree on the federal government’s borrowing limit by next week’s deadline.
“The disappointing economic growth indicates that the US can’t afford big budget cuts without risking a second recession,” said Kai Fachinger, who manages more than $1 billion in equities at SAM Sustainable Asset Management in Zurich.
“The weak consumer data reflect the high uncertainty among American consumers.”
Veolia Environnement tumbled 8.9 per cent to €15.92, the lowest since April 2009.
Suez Environnement declined 3.4 per cent to €12.66.
Bekaert lost 11 per cent to €42.64 in Brussels trading after reporting first-half profit that missed analysts’ estimates.
Sanoma Oyj, a Finnish publisher, slid 4.7 per cent to €12.27 after lowering its outlook for full-year net sales and operating profit.
Schneider Electric fell 1.6 per cent to €101.05, its lowest price since October 2010.
The world’s biggest manufacturer of low- and medium-voltage equipment pared its full-year margin target as first-half profit rose less than analysts estimated because of rising raw-material costs.
Michelin and Cie, the world’s second-largest tyre maker, fell 4.1 per cent to €58.71 as managing partner Dominique Senard said raw-material cost increases might trim €400 to €500 million from 2012 earnings.
Teleperformance, a French call-centre company, plunged 14 per cent to €17.88, the biggest drop since 2008.
Vodafone limited losses in the Stoxx 600, climbing 4.4 per cent to 172.70p, its biggest gain since March. – (Bloomberg)
