Posted by
alfredlester on Wednesday, November 10, 2010 4:42:31 PM
MADRID (MarketWatch) — European stock markets fell on Wednesday, as investors cashed in on some of the prior day’s strong gains, with losses led by France’s Natixis, tumbling after disappointing results.
The Stoxx Europe 600 index fell 0.2% to 272.78.
What Investors Can Expect From the G-20
Currency traders will listen closely for signs that the Group of 20 nations will counter soaring currencies with protectionist measures, which could hurt global growth, says portfolio manager Axel Merk. MarketWatch's Laura Mandaro reports.
The index gained 0.6% on Tuesday to end at 273.46, marking a new 2010 closing high and the highest closing value since September 2008.
Investors were also warily eyeing the start of a Group of 20 meeting in Seoul, South Korea.
Disappointing results from a couple of banks in Europe weighed on the sector, dragging the Stoxx 600 south.
Shares of Italy’s UniCredit SpA fell 2% in Milan. Third-quarter net profit fell 15% as net interest income dropped and trading was weaker, according to Dow Jones Newswires.
In Paris, shares of French investment bank Natixis SA tumbled 7.4%. Third-quarter earnings released after the market close Tuesday fell short of analyst forecasts. The group said net profit fell 16% and net revenue was off 4%.
Also on the downside in Paris, shares of Credit Agricole SA were off 2.8% ahead of results due later.
The CAC-40 index slipped 0.4% to 3,928.24.
Among the gainers, shares of Veolia Environnement SA gained 2.2% after the group’s 9-month results pleased analysts no teletrack payday loan. The French utility said nine-month adjusted operating profit rose 4.7% on 0.8% higher revenue and confirmed full-year guidance.
Also within utilities, Electricite de France SA rose 2.4%.
The German DAX 30 index fell 0.3% to 6,768.89, a day after marking a new 2010 closing high and a new 52-week high. Keeping pace with losses for other European banks, Deutsche Bank AG fell 1.8%.
Auto stocks were also weaker across the board, with shares of BMW AG down 1.5% and Volkswagen AG off 1.4%.
On the upside, shares of utility giant E.On AG jumped nearly 4%. The company said it would seek to divest all or part of certain businesses to help further reduce debt. It swung to a third-quarter loss and cited tough markets in Spain, Italy and France, though improving markets in Germany.
In London, the FTSE 100 index fell 0.3% to 5,857.35, chiefly weighed by shares of miners, coming off after strong gains in the prior session.
Shares of J Sainsbury PLC fell 2% after the U.K. supermarket chain said it expects the economic environment to remain challenging in the second half of the fiscal year. It also reported a fiscal first-half profit rise.
Shares of Belgian food retailer Delhaize Group rallied more than 5% after it reported a rise in third-quarter profit and confirmed guidance for 2010.
Europe Markets: Europe stocks drop, led by France’s Natixis