FRANKFURT (Dow Jones) – Light shows the European stock markets on Thursday afternoon. According to a friendly start the markets sharply turned into the red. This strain weaker Purchasing managers’ indices in Europe and renewed worries about Irish Bonds. Financial values are then the weakest values.
Also Steel tracks will be pressed by a negative study . The Euro Stoxx 50 loses to 12.10 clock by 0.7 % or 21 to 2732 points , the Stoxx -50 is 0.4% or 9 to 2,505 meters. In the afternoon, at the U.S. economic indicators or the index of U.S. leading indicators on the Agenda.
EU Purchasing Manager provide sobering
The announcement of the purchasing managers’ indices in the euro zone create disillusionment in the market. These are slightly below the Expectations remained. shares and Euro came out from their daily highs back . It remains to be seen whether the euro zone in the coming quarters by the slowdown of economic activities in the U.S. can detach . "The fact is that the momentum go out, " commented one trader. The aggregate index of all EU countries for September was published at 53.8 , the market had but reached a level of 55.9 set.
Irish bonds remained under pressure – to ensure the banking system
Well under pressure , Europe’s banking sector. This strain Worried about Irish banks and earnings revisions at all institutes. The Credit spreads on Irish government bonds by the market represent -assessed risk , are on a new record high increased. The spreads on Irish banks have extended. Triggers are reports that from subordinated bonds Ireland’s banking sector could be restructured. The banking sector is then to 0.8 %.
In addition, the need for correction charged for the earnings estimates for the U.S. banking sector. " likely After a weak summer, the Estimates for the sector for the third quarter are too high, " warns a dealer. A few days ago, the U.S. Banks Analyst Meredith Whitney warned that the revenue of the industry compared to Previous year will decrease significantly . The day before had the German Bank’s earnings estimates for Goldman Sachs and Morgan Stanley significantly adjusted downward . Among other things fall Credit Suisse by 2.4%, , UBS 2% , BNP Paribas by 1.7 % and Intesa to 1.5%. UniCredit recover to 1% after the sharp price reductions from the previous day .
Steel sector suffers from Merrill trial
Steel – values suffer from a negative study by Merrill Lynch is, it in trade. The analysts made this price pressure in Steel sector , and assume that Arcelor Mittal and ThyssenKrupp in the fourth quarter of the price per ton of steel by 20 USD to 30 USD will have to cut . The study load on these two tracks also , states . For Arcelor Mittal is about 2.1% to 24.38 EUR down Kloeckner break even by 5.5 % a to 15.77 EUR . Even ThyssenKrupp fall by 1.9 % to 23,31 EUR, although a buy recommendation from the Societe should support generals the stock easily.
DJG / mod / gei / mrf