This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

[video]The Deal: European Stocks Slide After a Week of Gains

LONDON (The Deal) -- In literary circles they call it the pathetic fallacy: If the market goes up the sun shines, if the market is in a black mood, we have storms. Well, it's certainly a fallacy Thursday. A brief sunny interlude this morning after a week of storms, and the market slides gloomily after a week of gains.

Big fallers in London and Paris Thursday were Lloyds Banking Group (LYG), which lost over 4% despite swinging into profit for 2013, and BNP Paribas which also fell about 4%. Why? Lloyds has yet to prove that its long run of provisions for miss-selling to retail and small business customers is coming to an end. So far it's set aside over $16 billion for compensation payments. And the French bank announced this morning it will take a $1.1 billion provision in the fourth quarter relating to a possible violations of U.S. economic sanctions.

British sugar and sweeteners group T ate & Lyle fell nearly 17% after saying prices for its sucralose sweetener -- sold under the Splenda brand by Johnson & Johnson's McNeil Nutritionals -- will fall faster than previously expected this year. And to add to London's woes, aircraft engine maker Rolls Royce fell about 14% after warning U.S. defense cuts mean revenue and underlying profits in the coming year will be flat for the first time in a decade.

By mid-morning, London's FTSE 100 was down 0.61% at 6634, while in Paris, the CAC40 was down 0.22% at 4296. In Frankfurt, where German lender Commerzbank gained 2% after generating a profit despite a costly restructuring program, the DAX was also down 0.22% at 9519.

Europe's gloom followed similar reversals in Asia overnight. Doubts set in about the value of Wednesday's better-than-expected trading data from China and an unexpected increase in unemployment in Australia combined with a stronger Japanese yen to weaken markets across the region. In Tokyo, the Nikkei 225 closed down 1.79% at 14,534, in China, the Shanghai Composite fell 0.55% to 2,098 and in Hong Kong the Hang Seng was down 0.54% at 22,165. In Sydney, Australia the ASX 200 was almost flat, after a week of gains, at 5308.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
AAPL $130.28 0.00%
FB $81.53 0.00%
GOOG $565.06 0.00%
TSLA $218.42 0.00%
YHOO $44.52 0.00%

Markets

DOW 18,080.14 +21.45 0.12%
S&P 500 2,117.69 +4.76 0.23%
NASDAQ 5,092.0850 +36.0220 0.71%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs