European stocks, US futures retreat, SBM, Leighton decline
Friday, 15 May 2009
LONDON, May 14 (Bloomberg): European and Asian stocks and U.S. futures declined, led by energy companies as oil slid for a second day and SBM Offshore NV forecast lower-than-expected profit, offsetting a rebound by banks.
SBM, the world's largest supplier of floating oil production platforms, slumped 12 per cent. Leighton Holdings Ltd. slid 7.5 per cent as Australia's biggest construction company reduced its full-year earnings forecast by 10 per cent. Barclays Plc gained 4.7 per cent after Morgan Stanley recommended the shares, leading a gauge of banks higher after the steepest drop in six weeks yesterday.
Europe's Dow Jones Stoxx 600 Index fell 0.3 per cent to 200.09 at 11:41 a.m. in London, after swinging between gains and losses at least 12 times. The MSCI Asia Pacific Index sank 2.9 per cent, while Standard & Poor's 500 Index futures retreated 0.4 per cent.
"We are seeing profit taking out of a very remarkable bear market rally," said Wolfgang Matejka, who oversees about $3 billion as chief investment officer at Meinl Bank in Vienna. "The fundamentals are still missing. There is huge risk still in the market."
The Stoxx 600 dropped for the past three days as the Bank of England said the U.K. economy faces a slow recovery and earnings at companies from ING Groep NV to Bulgari SpA disappointed investors. The index had rallied as much as 33 per cent since March 9.
"The market is having a bit of a reality check, the green shoots of recovery have been frozen at last as we are still in a deep-seated recession," said David Buik, a London-based market analyst at BGC Partners in London.
SBM declined 12 per cent to 11.20 euros, the biggest intraday drop since November. Full-year net income will be in the same range as 2008 and earnings before interest and taxes at SBM's lease unit will be lower than last year, the company said late yesterday.
Royal Dutch Shell Plc, Europe's largest oil company, fell 1.7 per cent to 1.61 pence as crude declined as much as 2.5 per cent after the International Energy Agency cut its 2009 forecast for world oil demand, projecting consumption will drop the most since 1981. France's Total SA slid 1.8 per cent to 40.30 euros.
Leighton Holdings, controlled by Germany's Hochtief AG, slid 7.5 per cent to A$22.52 after forecasting lower profit as the global financial crisis caused projects to be deferred or canceled. Chief Executive Officer Wal King said the company faces pressure on its operating performance for the remainder of the financial year.
SBM, the world's largest supplier of floating oil production platforms, slumped 12 per cent. Leighton Holdings Ltd. slid 7.5 per cent as Australia's biggest construction company reduced its full-year earnings forecast by 10 per cent. Barclays Plc gained 4.7 per cent after Morgan Stanley recommended the shares, leading a gauge of banks higher after the steepest drop in six weeks yesterday.
Europe's Dow Jones Stoxx 600 Index fell 0.3 per cent to 200.09 at 11:41 a.m. in London, after swinging between gains and losses at least 12 times. The MSCI Asia Pacific Index sank 2.9 per cent, while Standard & Poor's 500 Index futures retreated 0.4 per cent.
"We are seeing profit taking out of a very remarkable bear market rally," said Wolfgang Matejka, who oversees about $3 billion as chief investment officer at Meinl Bank in Vienna. "The fundamentals are still missing. There is huge risk still in the market."
The Stoxx 600 dropped for the past three days as the Bank of England said the U.K. economy faces a slow recovery and earnings at companies from ING Groep NV to Bulgari SpA disappointed investors. The index had rallied as much as 33 per cent since March 9.
"The market is having a bit of a reality check, the green shoots of recovery have been frozen at last as we are still in a deep-seated recession," said David Buik, a London-based market analyst at BGC Partners in London.
SBM declined 12 per cent to 11.20 euros, the biggest intraday drop since November. Full-year net income will be in the same range as 2008 and earnings before interest and taxes at SBM's lease unit will be lower than last year, the company said late yesterday.
Royal Dutch Shell Plc, Europe's largest oil company, fell 1.7 per cent to 1.61 pence as crude declined as much as 2.5 per cent after the International Energy Agency cut its 2009 forecast for world oil demand, projecting consumption will drop the most since 1981. France's Total SA slid 1.8 per cent to 40.30 euros.
Leighton Holdings, controlled by Germany's Hochtief AG, slid 7.5 per cent to A$22.52 after forecasting lower profit as the global financial crisis caused projects to be deferred or canceled. Chief Executive Officer Wal King said the company faces pressure on its operating performance for the remainder of the financial year.