European stock markets closed down more than 1 percent, mainly as a result of selling shares of commodity production. Shares in Europe have recently experienced a continuous rise, the investors decided to take a rest, they have sold in the state of the economy more sensitive to the stock. 600 pan-European Dow Jones stock index fell 1.4 percent, to close at 206.59 points. Trading day after the eight days of the index higher. Last week, the index rose nearly 5 percent, over the past nine weeks in total, up 8 weeks.
Today, the major indexes fell in Europe, the French CAC-40 index fell 1.9 percent, to close at 3248.67 points; the German DAX 30 index fell 1 percent, to close at 4866.91 points; the United Kingdom FTSE 100 index fell 0.6 percent, to close at 4,435.50 points. European shares closed when the U.S. is a significant decline in afternoon trading, the Dow fell more than 100 points. Asian stocks have already closed mixed.
Germany’s Commerzbank analyst Peter Dixon said: “In the past two months we have experienced a very strong reaction, in a decision to sell shares when investors arbitrage is inevitable.”
Bank stocks rebound in the current round of Europe and the striker shares, investors took note of the first quarter of large banks is relatively optimistic results, while the economy has shown signs of improvement. Dixon said: “All the good news may have been in the stock market’s current valuation to be reflected in the stock market to a large extent in the coming months will depend on the development trend of the economy.”
HSBC Holdings (HBC) once after falling 4.7%, to close at ease only slightly decreases. The market value of the highest European bank said that the first quarter basic earnings significantly over the same period last year, mainly due to a one-time income. However, HSBC chief executive Michael Geoghegan said that despite these achievements, their outlook remains cautious stance. He said that economic recovery is now talking about the “infancy” is still too early, the economy might usher in a longer period in the doldrums.
Most large banks in Europe are falling, Standard Chartered Bank’s shares fell 6.8 percent, the German Post Bank’s shares fell 4%.
Mining, oil shares down
Over the past few weeks in the market’s expectations about the economic outlook also contributed to the improvement of mineral extraction and oil production stocks rose today, the two also hit back plate. Kazakhstan to Kazakhmys copper shares falling 13.6%, Xstrata’s shares closed down 2.8%. Platinum company Lonmin’s shares fell 10 percent, to close at 1460 pence.
Lonmin announced that in order to “and exchange rates in the platinum price is hard to predict a difficult period,” to enhance the balance sheet, the company will release 3510 million new shares, priced at 900 pence per share, for a total of about 457 million U.S. dollars to raise funds. In addition, Lonmin announced that the first half of fiscal year loss of 112 million U.S. dollars.
British utility Centrica shares are up 6%. The company has signed an agreement to buy British Energy 20% stake. Centrica reiterated that the entire fiscal year profit is expected to remain unchanged. Centrica will pay 2.3 billion pounds (3.5 billion U.S. dollars) to acquire the British nuclear power generation 20% of the shares of the Group. Not long ago, British Energy has been the acquisition of French power.
At the same time, EDF will acquire the Belgian company Centrica holds SPE 51% of the shares, the purchase price for the 1.3 billion euros (1.8 billion U.S. dollars). Electricite de France in Paris-listed shares fell 5.6%. Barclays Wealth analyst said: “We believe that the terms of the transaction more favorable to Centrica. At the same time, we believe that the disadvantage of its power in France because the French company’s debt reduction will be lower than expected.”
The results of today’s important news also: German travel company TUI announced that the first quarter turned loss into gain, profit totaled 415 million euros, mainly due to the sale of the shipping sector. However, TUI’s share of profits less than analysts expected. TUI’s shares falling 13.6%.
Pharmaceutical stocks are the focus of plates: AstraZeneca (AZN) shares jumped 5.5%. The United Kingdom - announced that the Swedish manufacturer, in a final phase of clinical trials, the company developed a heart disease better than drugs Myers - Myers Squibb (BMY) and Sanofi - Aventis (SNY) A joint production of competitive products. Aventis shares listed in Paris fell 1.1%.