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TMCNet:  European Markets Fall After German Industrial Production Declines

[July 07, 2014]

European Markets Fall After German Industrial Production Declines

(Alliance News Via Acquire Media NewsEdge) PARIS (Alliance News) - The European markets are in negative territory on Monday, after German industrial production declined unexpectedly in May and at the sharpest pace since April 2012 as geopolitical risks weighed on business confidence and demand.


A report by Destatis showed that German industrial output fell 1.8% in May from the prior month. This was the third consecutive fall and the biggest since April 2012, when output dropped by 2%. Economists had forecast a 0.2% rise in output, after it declined by a revised 0.3% in April.

Meanwhile, Eurozone investor sentiment recovered in July, after weakening in the previous two months, survey figures from the think-tank Sentix showed. The Sentix indicator rose to 10.1 from June's 8.5. Economists had forecast a lower score of 7.7.

The Euro Stoxx 50 index of eurozone bluechip stocks is losing 0.32%, while the Stoxx Europe 50 index, which includes some major UK companies, is falling 0.38%.

The German DAX and the UK's FTSE 100 are falling around 0.2% each, while the French CAC 40 and Switzerland's SMI are declining 0.5% each.

In Frankfurt, Deutsche Boerse is losing 2.5%. Credit Suisse cut the stock to ''Underperform'' from ''Neutral.'' Deutsche Bank and Commerzbank are moderately lower.

Nomura reduced its rating on Sky Deutschland to ''Neutral'' from ''Buy.'' The stock is declining 3.1%.

Air Berlin is trading close to 4% higher. The German airline reported higher capacity in June, despite flat traffic, adding that it started off the summer with more passengers.

In Paris, Safran is leading the decliners by falling 1.9%. Saint-Gobain and Bouygues are losing 1.1% each.

Axa and Vinci are also notably lower.

Kepler Cheuvreux raised Societe Generale to ''Buy'' from ''Hold.'' The stock is moderately higher.

Bucking the trend, Vallourec is climbing close to 5%.

Renault is rising 2.5% after announcing sales figures for the first half of the year.

Lafarge is nearly unchanged, after miner Anglo American announced an agreement in principle to sell its 50% ownership interest in Lafarge Tarmac Holdings Limited joint venture to the cement giant for a minimum value of 885 million pounds. In London, Anglo American is moderately lower.

Further, in London, Taylor Wimpey, which issued a trading update for the first half, is losing 2.2%.

Weir Group is gaining 2.2% on a broker upgrade.

TeliaSonera is gaining 2.1% in Stockholm. The telecommunications firm has agreed to buy domestic peer TelEUR2 AB's operations in Norway for an enterprise value of 5.1 billion Swedish kroner. TelEUR2 is also up around 2%.

Post NL is surging over 16% in Amsterdam. The Dutch mail firm said it now expects full-year underlying cash operating income to range between 260 million euros and 290 million euros, higher than its prior view of 180 million euros and 220 million euros.

The Asian stocks moved about in a lackluster manner following their recent gains. The indecisive mood was also due to the lack of lead from Wall Street, which remained closed on Friday.

In the US, futures point to a lower open on Wall Street after the Independence Day Holiday.

Crude for August delivery is losing USD0.20 to USD103.86 per barrel, while gold is falling USD6.1 to USD1314.5 a troy ounce.

Copyright RTT News/dpa-AFX

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