Monday, September 17, 2012

European stock markets lower september 17 2012

European stock markets lower september 17 2012 : European stocks pushed lower on Monday, as concerns over the handling of Spain's financial crisis weighed on sentiment, while investors locked in profits after stocks were recently boosted by the announcement of fresh monetary easing by the Federal Reserve. During European afternoon trade, the EURO STOXX 50 dropped 0.54%, France’s CAC 40 slumped 0.62%, while Germany’s DAX 30 fell 0.24%.

Investors remained cautious as Spain's government faced protests over the weekend against public spending cuts, even as Madrid told its European partners that its next steps to overhaul the economy would avoid further cuts in public spending.

Earlier Monday, European Central Bank policymaker Ewald Nowotny reminded Spain that it needs to apply for a rescue package to qualify for the central bank’s bond-buying program, while Reuters reported that Spanish Prime Minister Mariano Rajoy is set to unveil a further economic reform package late September.

Stocks rallied broadly on Friday after the Fed announced that it would buy USD40 billion of mortgage-backed securities every month and would keep buying them until the job market improves.

Spanish lenders led losses in the financial sector, as Banco Santander saw shares plummet 1.75% and BBVA plunged 1.35%.

Other financial stocks remained mixed, as shares in French lenders BNP Paribas and Societe Generale advanced 0.65% and 0.32%, while Germany's Deutsche Bank tumbled 1%.

Elsewhere, commodity-linked stocks were also broadly lower, as steelmaker SSAB dove 7.81% after saying that demand for strip products has been much weaker than expected in the third quarter and warned that falling iron ore prices will hurt earnings in the first quarter of next year.

ThyssenKrupp, Germany’s biggest steelmaker, also lost 2.99% as UBS AG downgraded the stock to sell from neutral, while France-based ArcelorMittal plummeted 2.80%

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