European stocks decline
Friday, 8 June 2007
LONDON, June 7 (Bloomberg): European stocks headed for the longest losing streak in three months, paced by industrial companies after brokerages downgraded shares of Volvo AB and SKF AB.
Europe's Dow Jones Stoxx 600 Index dropped for a fourth day, the longest rout since the first week of March. The measure dropped the most in two months yesterday on expectations the European Central Bank will keep raising borrowing costs. The Bank of England today left its benchmark interest rate unchanged after increasing it to the highest in six years last month.
``European markets are due for a setback,'' said Jesper Kruger, who helps manage about $64 billion at ATP in Copenhagen. ``Equities look overbought right now.''
The Stoxx 600 last week reached its highest since September 2000, climbing within 6 points of a record set in March 2000. The index declined 0.6 per cent to 387.85 as of 1:07 p.m. in London today. The Stoxx 50 declined 0.3 per cent, while the Euro Stoxx 50, a measure for the 13 nations sharing the euro, lost 0.5 per cent.
National benchmarks fell in 17 of the 18 western European markets. The U.K.'s FTSE 100 lost 0.1 per cent, France's CAC 40 slipped 0.7 per cent as did Germany's DAX. Sweden was closed yesterday for a public holiday.
Indexes extended declines on reports North Korea test fired several short-range missiles into the Yellow Sea.
Volvo, the region's second-largest truckmaker, decreased 2.9 per cent to 144 kronor. JPMorgan Chase & Co. cut its recommendation on the stock to ``underweight'' from ``neutral.'' Production will probably fall ``significantly'' in the second quarter, hurting profit margins, London-based analyst Julia Varesko wrote in a note to investors.
Europe's Dow Jones Stoxx 600 Index dropped for a fourth day, the longest rout since the first week of March. The measure dropped the most in two months yesterday on expectations the European Central Bank will keep raising borrowing costs. The Bank of England today left its benchmark interest rate unchanged after increasing it to the highest in six years last month.
``European markets are due for a setback,'' said Jesper Kruger, who helps manage about $64 billion at ATP in Copenhagen. ``Equities look overbought right now.''
The Stoxx 600 last week reached its highest since September 2000, climbing within 6 points of a record set in March 2000. The index declined 0.6 per cent to 387.85 as of 1:07 p.m. in London today. The Stoxx 50 declined 0.3 per cent, while the Euro Stoxx 50, a measure for the 13 nations sharing the euro, lost 0.5 per cent.
National benchmarks fell in 17 of the 18 western European markets. The U.K.'s FTSE 100 lost 0.1 per cent, France's CAC 40 slipped 0.7 per cent as did Germany's DAX. Sweden was closed yesterday for a public holiday.
Indexes extended declines on reports North Korea test fired several short-range missiles into the Yellow Sea.
Volvo, the region's second-largest truckmaker, decreased 2.9 per cent to 144 kronor. JPMorgan Chase & Co. cut its recommendation on the stock to ``underweight'' from ``neutral.'' Production will probably fall ``significantly'' in the second quarter, hurting profit margins, London-based analyst Julia Varesko wrote in a note to investors.