FRANKFURT (Dow Jones) – With a heavy fall in prices, the European stock markets on Friday walked out of a deep red trading week.
The Euro-Stoxx-50 broke by 4.3% and a 111 points to 2,500, but in the meantime had already lost crash-like 5%. The Stoxx 50 fell by 3.7% or 89 points to 2328. Above all, sell-offs by U.S. investors pushed the stock exchanges, and the euro. The single currency broke at times an almost $ 1.26.
Dealers talked of a massive capital withdrawal from Europe by U.S. investors. This had been found out that almost all sectors equally lost. In addition to the stock markets dropped sharply and corporate bonds. The CDS index for insurance against default jumped to a 14-month high.
"Europe has done for information purposes," said a dealer with reference to the withdrawal of U.S. investors. "This is becoming the first in a burglary in euros, which is followed by the cash equity markets." The investors were overinvested in recent years in European assets. Due to the financial crisis in the U.S. and the prospect of the euro as the world reserve currency, this was attractive. The slow and uncoordinated approach of the EU countries to Greece, they scare now.
So it got from the conference call of G7 finance ministers in the afternoon as little as clear statements by ECB President Trichet made the previous day. The election in England to interpret an incompetent parliament. In Germany, support for the bailout of Greece was indeed noted, however, stressed the lack of agreement of the opposition.
The withdrawal of capital from Europe covert even the question of which system problems for the Wall Street crash on Thursday were responsible. Dealer lead him on the fast computer "RF" trade back to unregulated trading platforms that have durchgeroutet even the most absurd orders to the exchanges.
Even the much improved U.S. labor market data in April went down. With a gain of 290,000 jobs, the shuttling around 200 000 jobs were more than met expectations. Also the previous month in March to an increase of 230,000 jobs was 162 000 according to previously hochrevidiert. Technical analysts now hope that offer support to 2450 points in the Euro-Stoxx-50 support.
All sectors in the red
No big differences was the reporting day, the membership of cyclical or defensive sectors. During banking stocks fell by 3.8% broke even food values by 3.7%, the defensive pharmaceutical title by 3.4%. Days losers were the financial services provider with minus 4.9%. Under pressure, the technology levels stood at 4.5% discount because of significant declines on the Nasdaq. Retail collapsed by 4.7%, however, were impacted by the dividend payout at Carrefour, which was not mentioned in the index calculation.
Unclear conditions for election in Great Britain
Very negative adopted the trade, the uncertain majorities on the parliamentary elections in Britain. It may take some time before a clear majority on a government program but a few. "Uncertainties are at the moment, what investors do not want," commented one dealer. "The increased speed of the political horse trading between the three parties must, to avoid further market losses," said IG Index. Among other things, Lloyds lost 5.5% and Barclays 6%. If the insurers Aviva fell by 4.8%. Royal Bank of Scotland were sent despite positive figures recorded by 5.7% to 45.5 p.
South European banking stocks were in the course of the day even recover from the crash the previous day, but also turned the afternoon into the red. Initially supported the German support for the Greek rescue package, then pressed the burglary of the bank loans. The CDS insurance on Santander and Societe Generale rose substantially, Santander exceeded 10%. Its shares fell by 3.8% to 7.71 EUR, Societe Generale broke up 8% on 32.77 EUR.
DJG / mod / reh