EUROPE REPORT: Eurostoxx 50:2,280.02 (-36.84) Dax:4,607.42 (-86.65) CAC 40:3,051.02 (-51.41)
EUROPEAN CARMAKERS dealt a blow to markets after Germany’s Daimler reported a worse-than-expected first-quarter loss.
Daimler,the German car maker, reported a €1.29 billion first-quarter loss, compared with net income of €1.3 billion a year ago. Since the group makes luxury cars such as Mercedes-Benz, it has been particularly hit by recession. The worse-than-expected loss led Daimler shares 6 per cent lower to €25.73 on Tuesday morning.
Europe's car industry suffered, with Daimler peer BMWdown 6 per cent to €25.52, Italy's Fiat4.9 per cent lower at €7.65 and France's Renaultceding 8.3 per cent to €21.03.
The FTSE Eurofirst 300 index opened lower for the second consecutive session, on anxiety over swine flu and US banks’ stress tests. The pan-European index fell 2.3 per cent to 795.06.
Banks and financials dragged on the region's bourses, on amplified fears over US banks failing stress tests. Deutsche Bankwas the worst performer on the Dax. Despite reporting better than expected first-quarter profits, its shares lost 6.9 per cent to €40.26. Analysts put this down partly to profit taking, and partly to the fact the bank posted €1 billion in writedowns for the first quarter.
France's BNP Paribasfell 5.5 per cent to €36.15 and Switzerland's UBSlost 4 per cent to SFr14. The World Steel Association said on Monday that global demand would fall by 15 per cent in 2009, due to car makers and builders cutting production.
ArcelorMittal, which is expected to post a second consecutive quarterly loss on Wednesday, fell 8.4 per cent to €18.20 – the worst drop on the CAC. German rival Thyssenkruppalso suffered, falling 5 per cent to €16.36.
Travel and tourism stocks fell on fears swine flu might cause trips to be cancelled. Accor, Europe's leading hotelier, lost 4.6 per cent to €30.02, having fallen 3.8 per cent in the previous session. Among airlines, Ryanairlost 5.4 per cent to €3.12 and Air Francefell 2.6 per cent to €8.16.
Pharmaceuticals were the only upward stocks as hopes of flu vaccines or treatments continued to buoy the sector. Sanofi Aventis, the French drugmaker, rose 0.1 per cent to €41.76, and Switzerland's Rocherose 1.3 per cent to SFr146.50. – Copyright 2009 Financial Timesservice
