European Markets In Negative Territory; Travel Stocks Under Pressure
The European markets are marginally to moderately lower in afternoon trading Monday, as disappointing economic data and falling U.S. index futures led to risk aversion. Airline stocks are under pressure owing to an industry outlook report, while broker comments dragged some technology and leisure travel stocks.
The Euro Stoxx 50 index of eurozone bluechip stocks is losing 0.66 percent, while the Stoxx Europe 50index, which includes some major U.K. companies, is falling 0.41 percent.
The German DAX is losing 0.17 percent and the French CAC 40 is falling 0.81 percent. The UK's FTSE 100 is slipping 0.08 percent and Switzerland's SMI is sliding 0.20 percent.
In Frankfurt, Diversified utilities E.ON and RWE are declining 2.2 percent and 1.3 percent, respectively.Commerzbank reduced its price targets for both companies.
Airline Lufthansa is losing 1.2 percent, after the International Air Transport Association slashed its outlook for 2011 airline industry profits. The industry group cited high oil prices, natural disasters in Japan, and the political unrest in the Middle East and North Africa for the revision. International Consolidated Airlines is falling 1.7 percent in London.
Infineon Technologies is losing 1 percent, while SAP is adding 0.2 percent. Goldman Sachs reduced its rating on European technology sector to "Underweight" from "Overweight." In Paris, Cap Gemini is losing 2.5 percent and STMicroelectronics is dropping 2.4 percent.
Bayer is leading the gainers by adding 1.9 percent. The company revealed positive results from a late stage study of its prostate cancer drug Alpharadin.
Fresenius and Fresenius Medical Care are notably higher. Merck is adding 0.85 percent. Goldman Sachs raised its rating on European healthcare sector to "Neutral" from "Underweight."
Commerzbank is up 0.6 percent. Deutsche Bank is losing 1.1 percent.
Volkswagen is adding 0.6 percent, while BMW and Daimler are moderately down.
In Paris, Lenders Credit Agricole and Societe Generale are losing 2 percent and 1.9 percent, respectively. BNP Paribas and Natixis are falling 1.3 percent each.
Peugeot is falling 1.25 percent and Renault is dropping 0.9 percent.
Danone is up 0.25 percent. HSBC raised the dairy giant's price target to 58 euros from 54 euros.
Lloyds Banking Group is losing 2.05 percent and Barclays is dropping 0.8 percent. HSBC Holdingsand Royal Bank of Scotland are moderately lower.
Carnival is declining 1.85 percent and TUI Travel is falling 0.9 percent. Goldman Sachs reduced its rating on European travel & leisure companies to "Underweight" from "Overweight."
Glencore International is rising 2.4 percent. Kazakhmys and Rio Tinto are moderately higher.
Brewer Diageo is flat. The company's unit East African Breweries Ltd. agreed to buy SABMiller Africa BV's 20 percent shareholding in Kenya Breweries Ltd. SABMiller is marginally up.
Outside the main index, Aegis Group is surging 6.6 percent. The media firm confirmed that it is in talks to sell its market research unit Synovate to French research company Ipsos S.A.
In economic news, investor confidence in eurozone declined for the third consecutive month in June. TheSentix investor sentiment index, an indicator of confidence around 900 investors, decreased to 3.5 from 10.9 points in May. Economists were expecting a reading of 9.2 points.
Meanwhile, euro area producer price inflation eased slightly in April, data from Eurostat showed. The total industry producer prices on the domestic market excluding construction rose 6.7 percent year-on-year in April, slower than March's revised 6.8 percent increase.
Across Asia/Pacific, Australia's All Ordinaries lost 0.38 percent and Japan's Nikkei 225 retreated 1.18 percent. The markets in China, Hong Kong, South Korea, Taiwan and New Zealand are shut for the day.
In the U.S., futures point to a negative open on Wall Street. In the previous session, the Dow fell 0.8 percent, the Nasdaq plummeted 1.5 percent and the S&P 500 dropped 1 percent.
In the commodity space, crude for July delivery is sliding $0.90 to $99.32 per barrel and August gold is adding $3.5 to $1545.9 a troy ounce.