FRANKFURT (Dow Jones) – The prices of the major European stocks are weaker left the Monday. The Dow Jones Euro Stoxx 50 lost 1% or 28 to 2871 points. The Stoxx 50 fell by 0.6% or 16 to 2565 meters. "After the price rise over the past two weeks, investors take profits," said a dealer. Revenues, however, were very thin, investors were waiting, according to traders on the monetary policy meeting of the Federal Reserve on Tuesday.
Something was negatively affected the mood from the outset of weak originals from China, triggered by fears that the Chinese central bank could, in February after the surprisingly strong rise in cost of living once again tightening monetary policy. Among them were suffering mainly commodity title, because China had recently imported large quantities of raw materials. So-called defensive, that is relatively non-cyclical stocks, however, considered themselves good.
"Will be exciting if the monetary authorities are once again reassure the capital markets for an extended period of cheap money," said a dealer with a view to meeting the U.S. Federal Reserve on Tuesday. New U.S. economic data fell mostly in the context of the expectations regarding the Fed meeting and took no new evidence.
Chart-is the Euro Stoxx 50 index on the level of support of 2880 points. Resistance is happening in the area of 2,910 points.
China worries push commodity values
The index of commodity values in the Stoxx fell by 1.9%. Because of fears of further tightening of Chinese monetary policy, commodity prices are strongly decreased, suffered under the share prices of companies. Anglo American prices plunged by 1.6%, Xstrata fell by 3%.
Financial stocks among the losers
Also, some financial stocks were down, so AXA, Aegon and Societe Generale with reductions of between 2.5% and just over 3%. Dealers pointed to a mixture of caution before interest rate decision by the U.S. Federal Reserve on Tuesday, fear of a repeated tightening of Chinese monetary policy and the recent statements made by Moody’s to "AAA" rating in the U.S..
The agency said the situation has the largest economy in the world, despite the growing budget deficit so far, but not worse. With the increasing deficits the United States would, however, vulnerable to changes in the market by the confidence placed in them, which led to higher interest charges than previously thought, said dealers. The banking sector lost 0.9% and 1.1% of insurance companies.
Pharma shares sought
Plus, the index closed in the pharmaceutical stocks, which gained 0.4%, and the index of food and beverage manufacturers, with the supplement industry here turned out very thin. Both sectors are considered konjunkturresistent. Sanofi-Aventis gained 1.0%, Diageo 0.5% and Nestle 0.2%. BT Group benefited with an increase of 1.1% from a buy recommendation from the Citigroup analysts.
By Herbert-Rude, Dow Jones Newswires, +49 (0) 69 29725 217,
herbert.rude @ dowjones.com
DJG / hru / flf