European Stocks Weighed Down by Fears on Greek Debt, Crisis in Yemen
LONDON (TheDeal) -- Weak February U.S. durable goods data and concerns about Greece's debt crisis and the civil war in Yemen weighed on European stock indices on Thursday, with stocks falling sharply after a selloff on Wall Street.
Meanwhile, oil prices rose after Saudi Arabia, backed by other regional powers, said it had launched airstrikes in Yemen to defend the government against Shia Houthi rebels, who are perceived to have the backing of Iran.
In London, the FTSE 100 fell 1.22% to 6,905.22. In Frankfurt, the DAX tumbled 1.95% to 11,633.76. In Paris, the CAC 40 fell 1.69% to 4,936.28. The Athens benchmark was down 2.6%. The Greek economic minister said he was optimistic about striking a deal with eurozone peers over its debt crisis next week. His comments came after a setback yesterday when Greece failed to secure a €1.2 billion ($1.3 billion) rebate it said was wrongly transferred to creditors.
A gauge of German consumer confidence, as measured by the GfK research institute, rose more than expected.
In the U.K., February retail sales rose 5.1% year-on-year, a much bigger gain than expected and one which may quell talk that interest rates, which have been at a historic low 0.5% for six years, are as likely to be cut as they are to rise.
In London, London Stock Exchange tumbled more than 10% after Borse Dubai sold its 17.4% stake, exiting a company in which it first invested in 2007.
It sold the shares through an accelerated bookbuild at a reported price of 2,250 pence per share, raising about £1.36 billion ($2 billion) in total. London Stock Exchange shares were trading at 2,274 pence by mid morning.
Clothing retailer SuperGroup (SEPGF) rose about 7% after announcing it has wrested back rights to distribute Superdry products in North America and has signed up Idris Elba -- the British actor who rose to fame as The Wire's Stringer Bell -- to collaborate on a premium line of clothing.
Royal Bank of Scotland (RBS) - Get Report fell almost 2% after selling another 24.7% ofCititizens Financial at $23.75. It will raise $3.7 billion including a greenshoe, which would expand the offering to 28.4% of Citizens' share capital.
British Airways and Iberia parent International Consolidated Airlines was one of several travel stocks to decline on concern about higher oil prices, with the stock down about 5%.
Chipmaker ARM Holdings (ARMH) in London tumbled 4%, while in Amsterdam peer ASML Holding (ASML) - Get Report tumbled almost 4%, making it the leading declining in the Eurostoxx 50 as investors worried about falling demand for computers.
In Paris, advertising company Havas (HAVSF) tumbled more than 8% after Vincent Bolloré 's investment vehicle placed a bigger-than-expected 22.5% stake.
Vivendi (VIVHY) , which Bolloré chairs and in which he owns 5%, fell more than 2%.
In Tokyo, the Nikkei 225 tumbled 1.39% to close at 19,471.12 and the Topix dropped 1.46% to 1,568.82 amid a technology company selloff following the weaker U.S. data.
In Hong Kong, the Hang Seng edged 0.13% lower to close at 24,497.08.
