|
||||||||
  |
||||||||
|
||||||||
|
||||||||
|
||||||||
|
||||||||
|
|
|||||||||||||||||||||||||||||||||||||||||||||
Europe hit by retail blues
LONDON, England (CNN) -- European markets tumbled to 2 1/2-month lows on Friday as retail stocks were hit by concerns over sluggish sales and mounting military tensions took their toll on Wall Street. London's FTSE 100 fell 2.9 percent to 3,829.4 and the CAC 40 blue chip index in Paris lost 2.3 percent to 3,011.83, while Frankfurt's electronically traded Xetra Dax was down 3.4 percent to 2,897.91 in late trading (the German market was set to close at 1900 GMT). The pan-European FTSE Eurotop 300, a broader index of the region's largest stocks, was down 2.9 percent -- the lowest level in 2 1/2 months. The information technology, insurance, oil and gas sub-indices were the top decliners. European markets were closed on Wednesday and Thursday for the Christmas Day and Boxing Day, with little activity on Friday as investors continued in a holiday mood. "Trading is relatively thin with the Christmas holidays and there are bits and pieces of news but not much positive," Gert de Mesure, head of equity strategy at Delta Lloyd Securities, told Reuters. The retail sector came under pressure after Wal-Mart Stores (WMT), the world's largest retailer, said on Thursday its sales would be weaker than it had expected despite a strong last-minute sales rush before Christmas. The company said sales at stores open at least a year, a closely watched retail measure known as same-store sales, would be up 2 to 3 percent, rather than its previous forecast for a 3-to-5 percent gain. (Full story) European retailers are also bracing for what could turn out to be a joyless holiday sales season. (Full story) "The U.S. is the world's engine of growth and when that splutters we should all be worried," James Stewart, economist at Weavering Capital, told CNN. "The early retail sales reports from Europe's four biggest economies, that's Germany, UK, France and Italy, have not been encouraging," he said. "Double-dip recessionary fears are growing. I believe Germany may miss a recession but to German consumers it will feel like one. The European Central Bank should cut interest rates in the first quarter to stimulate growth." Britain's Dixons (DXNS) lost 3.6 percent to 142 pence and GUS (GUS) fell 2.5 percent to 552 pence after data that showed fewer shoppers visited major UK retail centres on the last weekend before Christmas than a year ago. (Full story) Germany's Metro (FMEO) was down 4.2 percent to 22.46 euros in late Frankfurt trading and French supermarket chain Casino (FCAS) slid 0.6 percent to 70.35 euros. French retailer Pinault Printemps Redoute (PPR) fell 4.1 percent to 68 euros after it boosted its majority stake in luxury goods group Gucci at a cost of 98.5 million euros. (Full story) Gucci edged up 0.1 percent to 87.70 euros in Amsterdam. British telecoms firm Cable & Wireless (CW) ended flat at 44.48 pence on news that U.S. investors were suing the group for failing to disclose a huge potential tax liability, accusing it of issuing "false and misleading statements'' that cost shareholders dearly. (Full story) Fiat shares fell to their lowest level in nearly two decades on Friday after Moody's cut the loss-making Italian carmaker and industrial group's debt ratings to "junk'' status. (Full story) Its shares were down 4.9 percent to 7.70 euros in Milan. The AEX index in Amsterdam was down 2.9 percent, Milan's MIB30 index fell 2 percent and the SMI in Zurich dropped 3.3 percent.
|
|
|||||||||||||||||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||||||||
