LONDON: Europe’s main stock markets fell yesterday as investors fretted over Italy’s post-election deadlock, poor economic data, looming US budget cutbacks and a raft of company results.
London’s benchmark FTSE 100 index of leading companies dropped 0.57 percent to 6,324.85 points approaching midday in the British capital. Frankfurt’s DAX 30 shed 1.27 percent to 7,643.44 points and in Paris the CAC 40 fell 1.19 percent to 3,678.85.
Milan’s FTSE Mib index lost 2.0 percent to 15,602.66 points as rising Italian unemployment numbers compounded worries about ongoing political uncertainty following inconclusive elections earlier this week.
Madrid’s IBEX 35 retreated 1.27 percent to 8,125.40 points after gloomy news that Spain’s manufacturing sector continued to shrink in February.
The euro fell to $1.3010 from $1.3062 late in New York on Thursday, having briefly moved below the $1.30 level. Gold prices declined to $1,570 an ounce on the London Bullion Market from $1,588.50 on Thursday.
The impending spending cuts also sent US stocks down, with the Dow Jones Industrial Average fell 0.53 percent to 13,980.07 points in early trading.
The broad-based S&P 500 declined by 0.62 percent to 1,505.36, while the tech-rich Nasdaq Composite declined 0.64 percent to 3,140.12.
Official data also painted a far from encouraging picture of the European economy, with unemployment running at record and “unacceptable” highs in the eurozone while inflation fell sharply, highlighting the weakness of consumer demand.
“European markets are under pressure, slapped by a combination of uncertainties over Italy’s political outlook, the failure to avert the US sequester by lawmakers in Washington and damp economic data,” said analyst Ishaq Siddiqi at trading group ETX Capital.Reuters
