Europe stocks fall
Sunday, 29 July 2007
LONDON, July 28 (MarketWatch): European stocks closed lower Friday in a volatile session, with credit-market jitters again reverberating through the market as Cadbury Schweppes delayed the sale of its US beverage unit on worries over the financing that potential buyers could receive.
A shaky FTSE 100 index (UK:UKX: news, chart, profile) lost 0.6% at 6,215.20 Friday. The move follows London's biggest one-day sell-off in per centage terms in four years Thursday -- a retreat that resulted in the index's biggest weekly loss since 2002. See London Markets.
The German DAX 30 index (DX:1876534: news, chart, profile) gave up 0.8% to stand at 7,451.68 while the French CAC-40 index (FR:1804546: news, chart, profile) dropped 0.6% at 5,643.96.
The pan-European Dow Jones Stoxx 600 index (ST:SXXP: news, chart, profile) ended 0.5% lower at 372.69 and 5% lower for the week.
All European indexes closed with sharp losses Thursday, as Wall Street plunged on concerns about shaky credit markets and the troubled US housing sector. After a steep drop Thursday, US stocks were trading lower in mid-morning trading Friday. See Friday's market snapshot.
One of the main concerns for European and US investors is that takeover activity engineered by private-equity firms -- one of the key reasons for several European markets recently hitting all-time highs recently -- could dry up.
Wall Street companies in the last week have been unable to raise money from the credit markets for private-equity firm Cerberus Capital Management's buyout of most of Chrysler or for the leveraged buyout of General Motors Corp.'s Allison Transmission. A deal to sell $10.3 billion in loans from the leveraged buyout of U.K. pharmacy chain Alliance Boots PLC was delayed.
"Stocks have been supported by takeover hopes. As finance becomes more expensive, this support is disappearing," said Jeremy Chantry, head of research at London-based stockbroker Hichens, Harrison & Co.
A shaky FTSE 100 index (UK:UKX: news, chart, profile) lost 0.6% at 6,215.20 Friday. The move follows London's biggest one-day sell-off in per centage terms in four years Thursday -- a retreat that resulted in the index's biggest weekly loss since 2002. See London Markets.
The German DAX 30 index (DX:1876534: news, chart, profile) gave up 0.8% to stand at 7,451.68 while the French CAC-40 index (FR:1804546: news, chart, profile) dropped 0.6% at 5,643.96.
The pan-European Dow Jones Stoxx 600 index (ST:SXXP: news, chart, profile) ended 0.5% lower at 372.69 and 5% lower for the week.
All European indexes closed with sharp losses Thursday, as Wall Street plunged on concerns about shaky credit markets and the troubled US housing sector. After a steep drop Thursday, US stocks were trading lower in mid-morning trading Friday. See Friday's market snapshot.
One of the main concerns for European and US investors is that takeover activity engineered by private-equity firms -- one of the key reasons for several European markets recently hitting all-time highs recently -- could dry up.
Wall Street companies in the last week have been unable to raise money from the credit markets for private-equity firm Cerberus Capital Management's buyout of most of Chrysler or for the leveraged buyout of General Motors Corp.'s Allison Transmission. A deal to sell $10.3 billion in loans from the leveraged buyout of U.K. pharmacy chain Alliance Boots PLC was delayed.
"Stocks have been supported by takeover hopes. As finance becomes more expensive, this support is disappearing," said Jeremy Chantry, head of research at London-based stockbroker Hichens, Harrison & Co.