Eurostoxx 50:2,949.13 (–5.79) Frankfurt DAX:7,128.41 (–66.19) Paris CAC:4,015.14 9 (+2.02)
EUROPEAN STOCKS sank for a fifth day yesterday as Libya’s violent uprising sent oil soaring to the highest level in 29 months.
The benchmark Stoxx Europe 600 Index retreated 0.6 per cent to 280.65 at close in London.
The Libyan revolt “is the opening of Pandora’s box,” said Charles Dautresme, senior strategist at Axa Investment Managers in Paris, which oversees $710 billion in assets.
“We don’t know how long the situation will last and that’s creating uncertainty. For stocks, the impact has gone beyond just those with business there or those dependent on oil,” he said.
Opponents of Libyan leader Muammar Gadafy consolidated control over cities in the oil-rich east while he clamped down on Tripoli, using tanks to block highways and security forces to attack residents, witnesses said.
RWE dropped 5.6 per cent to €49.18, the biggest decline since April 2009. The utility said profit will fall about 30 per cent this year because of a tax on its nuclear power plants and “stagnating” power prices.
RBS retreated 3.7 per cent to 45.56p as Britain’s biggest government-controlled lender reported a 2010 net loss of £1.1 billion ($1.8 billion).
Porsche preferred shares plunged 11 per cent to €54.95, the biggest drop since July 2009. The sports-car maker said a probe by prosecutors in Stuttgart into allegations of share-price manipulation by two former board members will delay a planned merger with Volkswagen.
Volkswagen preferred stock fell 2.6 per cent to €112.95.
Britvic, the maker of Robinson’s fruit drinks, tumbled 12 per cent to 369.50p after saying the price of key raw materials is rising at an “unprecedented” pace.
Vallourec, a French producer of steel pipes for the oil and gas industry, fell 6.6 per cent to €72.53 as profit missed analysts’ estimates.
Capita, which provides a criminal records service for the UK Home Office, climbed 6.9 per cent to 716p.
Credit Agricole advanced 5.1 per cent to €12.37. France’s third-largest bank had a narrower-than-estimated quarterly loss as earnings at the investment-banking business helped cushion provisions for bad loans at its Greek unit. – (Bloomberg)
