European stocks drop as eurozone recession deepens

European stocks fell on Thursday following news that the eurozone recession deepened in the final three months of last year, but some major companies were boosted by upbeat results.

London's FTSE 100 index of leading companies fell 0.50 percent to 6,327.36 points, while Frankfurt's DAX 30 shed 1.05 percent to 7,631.19 points, and in Paris the CAC 40 lost 0.78 percent to 3,669.60 points.

Madrid's IBEX 35 index gave up 0.71 percent to 8,247.4 points, hit hard by tumbling bank shares, and Milan's FTSE MIB dropped 1.0 percent to 16,545 points.

The European single currency touched a three-week low at $1.3315, before recovering some ground to $1.3329, still down from $1.3452 late on Wednesday. Gold edged up to $1,646 an ounce from $1,645 on the London Bullion Market.

"Europe's markets experienced their own version of a GDP Valentine's Day massacre as the contraction expected in the fourth quarter of 2012 proved to be much steeper than expected," said CMC Markets analyst Michael Hewson.

The recession in the 17-nation eurozone deepened sharply in the fourth quarter of 2012 as the debt crisis continued to sap growth and confidence, official data showed.

The eurozone economy shrank 0.6 percent in the three months to December, which compared with a contraction of 0.1 percent in the previous quarter.

In the second quarter of 2012, it contracted 0.2 percent, meaning that the recession has now lasted three quarters. The eurozone had meanwhile registered zero growth in the first quarter of last year.

Analysts said the latest figures were worse-than-expected, with the major economies also now dragged down, including Germany, the bloc's powerhouse.

Compared with output in the fourth quarter of 2011, the eurozone economy contracted 0.9 percent, according Eurostat agency figures.

For the wider 27-member European Union, output fell 0.5 percent compared with activity in the third quarter of 2012 when the bloc had eked out growth of just 0.1 percent.

-- Bleak picture --

-------------------

Compared with activity in the fourth quarter of 2011, the EU economy shrank by 0.6 percent.

Eurostat said that for 2012 as a whole, the eurozone economy contracted by 0.5 percent and the EU by 0.3 percent.

Analysts said the figures painted a bleak picture, noting that the German economy shrank by 0.6 percent in the fourth quarter compared with the third when it managed growth of 0.2 percent.

"The numbers look pretty ugly, even the robust and resilient powerhouse of Europe, Germany, succumbed to the misery of problems plaguing the eurozone," said analyst Anita Paluch at traders Gekko Markets.

"Still, even though GDP numbers are a very backward looking data, hence usually do not have huge market impact, the news is dragging markets lower as it indicates the region is struggling to get out of recession."

Despite the gloomy data, traders drew some comfort from a string of upbeat company earnings.

In Paris, BNP Paribas shares rose 2.0 percent to 46.75 euros after the French bank said net profits rose 8.3 percent last year to 6.55 billion euros, outperforming most of its rivals.

The price of shares in French automaker Renault jumped 7.6 percent to 46.50 euros, even though the group posted a 15.3-percent drop in 2012 net profit to 1.77 billion euros. But the results were far stronger than those of PSA Peugeot Citroen, which was downgraded one notch by Standard and Poor's to 'BB minus' on Thursday a day after posting a record 5 billion euro loss for 2012.

Shares in French energy giant EDF rallied 5.0 percent to 14.95 euros after it announced a 5.3-percent gain in annual net profit and reassured over its plans to cut as much as one billion euros in costs this year.

On the downside in Madrid, shares in Spanish bank Bankia collapsed by 12.39 percent to 41 cents after a suspension of trading in the stock was lifted.

Trading had been suspended at the request of the market regulator CVNMV and after a publication reported that the value of the shares would be reduced to 1 cent.

Asian markets rose on Thursday, with dealers looking ahead to an upcoming G20 meeting, while Hong Kong enjoyed healthy gains as dealers returned from a long break.

US stocks drifted down despite the announcement of two giant M&A deals: the merger of American Airlines and US Airways, and Berkshire Hathaway's takeover of ketchup maker Heinz.

The Dow Jones Industrial Average was off 0.13 percent to 13,965.13 points in midday trading.

The broad-based S&P 500 slid 0.06 percent to 1,519.46 points, while the tech-rich Nasdaq Composite shed 0.10 percent to 3,193.68 points.

burs-rfj-rl/arp

--

Get stories like this on the Yahoo app and discover more every day.
Download it now.
Loading...
  • The skin cure fad threatening Myanmar's elephants
    The skin cure fad threatening Myanmar's elephants AFP News - 2 hours 8 minutes ago

    "Elephant's skin can cure skin diseases like eczema," one shop owner, who requested anonymity, told AFP next to a counter brimming with porcupine quills and snake skins. Then you get the ash and mix it with coconut oil to apply on the eczema." He … More »

  • Who's who in the Syria conflict
    Who's who in the Syria conflict AFP News - 2 hours 46 minutes ago

    Talks aimed at ending Syria's nearly six-year war are set to open on Monday in the Kazakh capital, brokered by regime allies Russia and Iran and rebel backer Turkey. Key regime backer Russia began an air campaign in support of President Bashar … More »

  • Years of failed efforts to end Syrian conflict
    Years of failed efforts to end Syrian conflict AFP News - 2 hours 58 minutes ago

    Since the start of Syria's war in 2011, several diplomatic initiatives have stumbled over the future of President Bashar al-Assad. Here is a recap: - End of Arab solutions - In January 2012, two months after an initial bid to end the violence, … More »

  • US stocks rise, dollar falls as Trump era begins
    US stocks rise, dollar falls as Trump era begins AFP News - 3 hours ago

    US stocks rose and the dollar fell Friday as Donald Trump was officially sworn in as the president of the United States and Barack Obama's term ended. Trump's inauguration dominated a day that saw most major equity markets rise as the … More »

  • Automotive industry: Sales lower but resilient Business Times - 3 hours ago

    CYBERJAYA: The Malaysian automotive industry is resilient, considering there were no “surprises” by the industry players last year, despite lower sales figures, according to Malaysia Automotive Institute (MAI) chief. Chief executive officer Datuk … More »

  • Automotive industry: Sales lower but resilient Business Times - 3 hours ago

    CYBERJAYA: The Malaysian automotive industry is resilient, considering there were no “surprises” by the industry players last year, despite lower sales figures, according to Malaysia Automotive Institute (MAI) chief. Chief executive officer Datuk … More »

  • Top gainer: UMW Holdings shares soar Business Times - 3 hours ago

    KUALA LUMPUR: UMW Holdings Bhd soared almost 10 per cent yesterday, while its subsidiary UMW Oil & Gas Corp Bhd (UMW O&G) plunged more than 17 per cent, following the announcement of their consolidation plans. UMW Holdings was Bursa Malaysia’s top … More »

  • Top gainer: UMW Holdings shares soar Business Times - 3 hours ago

    KUALA LUMPUR: UMW Holdings Bhd soared almost 10 per cent yesterday, while its subsidiary UMW Oil & Gas Corp Bhd (UMW O&G) plunged more than 17 per cent, following the announcement of their consolidation plans. UMW Holdings was Bursa Malaysia’s top … More »

  • Trump's inauguration day of ritual upends tradition
    Trump's inauguration day of ritual upends tradition AFP News - 4 hours ago

    Donald Trump awoke as your everyday American billionaire. By noon he was sworn in as the nation's 45th president, on a whirlwind day that saw him thrust into the spotlight like never before. Trump, 70, began his Inauguration Day as many American … More »

  • Trump signs executive order against Obamacare health law
    Trump signs executive order against Obamacare health law AFP News - 4 hours ago

    President Donald Trump signed an executive order aimed at limiting the "burden" of the Obamacare health law that the incoming US leader has vowed to repeal. During the signing in the Oval Office, Trump's chief of staff Reince Priebus described the … More »

  • Singaporean buyer scores a bargain at St Regis Residences
    Singaporean buyer scores a bargain at St Regis Residences The Edge Property - 5 hours ago

    One of the first few resale transactions in 2017 resulted in a hefty loss for the seller. On Jan 3, a high-floor unit at St Regis Residences Singapore was sold at a loss of $2.3 million. The seller bought the unit in a sub-sale transaction in 2008 … More »

  • US stocks rise, dollar falls as Trump era begins Business Times - 6 hours ago

    NEW YORK: US stocks rose and the dollar fell Friday as Donald Trump was officially sworn in as the president of the United States and Barack Obama’s term ended. Trump’s inauguration dominated a day that saw most major equity markets rise as the … More »

  • US stocks rise, dollar falls as Trump era begins AFP - 6 hours ago

    US stocks rose and the dollar fell Friday as Donald Trump was officially sworn in as the president of the United States and Barack Obama's term ended. Trump's inauguration dominated a day that saw most ... … More »

  • Trump gets Obama's house, title _ even his Twitter handle
    Trump gets Obama's house, title _ even his Twitter handle Associated Press - 7 hours ago

    Donald Trump built his campaign on early morning tweet storms and hashtag-worthy slogans. Now president, he's in control of the White House's powerful social media arsenal, including the official @POTUS ... … More »

  • Business Highlights Associated Press - 7 hours ago

    ___ China's growth in 2016 slumps as Trump trade struggle looms China's economic growth sank to a three-decade low in 2016 as its struggling exporters brace for a possible trade battle with President-elect ... … More »

  • Stocks edge higher, snapping a 5-day losing streak for Dow
    Stocks edge higher, snapping a 5-day losing streak for Dow Associated Press - 8 hours ago

    Materials companies led U.S. stocks modestly higher Friday, recouping much of the market's loss from a day earlier and snapping a 5-day losing streak for the Dow Jones industrial average. Another crop ... … More »

  • How major US stock market indexes fared on Friday Associated Press - 8 hours ago

    Stocks closed modestly higher Friday, recouping much of the market's loss from a day earlier. The gains, which snapped a 5-day losing streak for the Dow Jones industrial average, came against the backdrop ... … More »

  • Gambia's Jammeh agrees to go, but exile terms not reached
    Gambia's Jammeh agrees to go, but exile terms not reached AFP News - 8 hours ago

    Gambia's Yahya Jammeh agreed "in principle" to hand over power to President Adama Barrow on Friday, Mauritanian and Guinean sources said, but differences remained before a full deal could be reached. Mauritania's President Mohamed Ould Abdel Aziz … More »

  • Dollar falls, U.S. stocks end higher after Trump inauguration
    Dollar falls, U.S. stocks end higher after Trump inauguration Reuters - 8 hours ago

    The dollar ended down while U.S. stock indexes rose in the last day of a choppy trading week, as investors reacted to President Donald Trump's inaugural speech. U.S. stocks started the day higher but gave up some gains after Trump started speaking. … More »

  • TrailStone buys Cargill's power and gas group - sources
    TrailStone buys Cargill's power and gas group - sources Reuters - 8 hours ago

    Commodities trader and investor TrailStone Group has purchased Cargill Inc's gas and power trading group, three sources familiar with the deal said this week. The move, first reported by Sparkspread, comes amid a reshuffling in the power and … More »

  • Dollar falls as investors unpack inauguration speech
    Dollar falls as investors unpack inauguration speech Reuters - 8 hours ago

    The dollar edged down on Friday as investors were underwhelmed by the limited scope of executive actions and the lack of concrete policy reforms in the inauguration speech of newly sworn-in U.S. President Donald Trump. Investors had been looking to … More »

  • Oil prices jump 2 percent ahead of producers' compliance meeting
    Oil prices jump 2 percent ahead of producers' compliance meeting Reuters - 8 hours ago

    Oil prices rose more than 2 percent on Friday on expectations that this weekend's meeting of the world's top oil producers would demonstrate compliance to a global output cut deal, but rising U.S. drilling activity limited gains. Members of the … More »

  • Mars investigating Skittles said to be intended for cattle Associated Press - 8 hours ago

    A mysterious Skittles spill on a rural highway in Wisconsin is taking another twist, with Mars Inc. saying it doesn't know why the discarded candy might have been headed to become cattle feed. The case ... … More »

  • US stocks close higher as Trump takes office AFP - 9 hours ago

    Wall Street stocks finished higher Friday as Donald Trump was sworn in as the 45th president of the United States and Barack Obama's term ended. US stocks were in positive territory virtually the entire ... … More »

  • Markets Right Now: Dow industrials break 5-day losing streak Associated Press - 9 hours ago

    The latest on developments in financial markets (All times local): 4:00 p.m. Stocks are ending higher, recouping much of the market's loss from a day earlier and breaking a 5-day losing streak for the ... … More »

 
Recent Quotes
Symbol Price Change % Chg 
Your most recently viewed tickers will automatically show up here if you type a ticker in the "Enter symbol/company" at the bottom of this module.
You need to enable your browser cookies to view your most recent quotes.
 
Sign-in to view quotes in your portfolios.

MARKET MOVERS

  • Most Actives
    Most Actives
    NamePriceChange% Chg
    0.172-0.002-1.15%
    N21.SI
    0.109+0.003+2.83%
    AAJ.SI
    0.121+0.006+5.22%
    40F.SI
    3.81+0.03+0.79%
    Z74.SI
    0.855-0.005-0.58%
    Y92.SI
  • % Gainers
    % Gainers
    NamePriceChange% Chg
    0.45+0.12+36.36%
    MR8.SI
    0.44+0.09+25.71%
    AWC.SI
    0.46+0.08+21.05%
    AYB.SI
    0.52+0.07+16.85%
    E8Z.SI
    0.20+0.02+10.50%
    BDN.SI
  • % Losers
    % Losers
    NamePriceChange% Chg
    0.22-0.03-13.73%
    AWI.SI
    0.155-0.015-8.82%
    F86.SI
    0.113-0.010-8.13%
    D79.SI
    0.23-0.02-8.00%
    T18.SI
    0.139-0.011-7.33%
    5NF.SI

Market Data

  • Currencies
    Currencies
    NamePriceChange% Chg
    1.4246-0.0012-0.09%
    USDSGD=X
    1.5220+0.0019+0.12%
    EURSGD=X
    1.7591+0.0004+0.02%
    GBPSGD=X
    80.1670-0.478-0.59%
    SGDJPY=X
    5.4390+0.002+0.04%
    SGDHKD=X
    3.1179-0.0011-0.04%
    SGDMYR=X
    9,436.7451+30.9307+0.33%
    SGDIDR=X
    4.8209+0.004+0.08%
    SGDCNY=X
    1.0759-0.0017-0.16%
    AUDSGD=X
  • Commodities
    Commodities
    NamePriceChange% Chg
    1,210.20+8.70+0.72%
    GCG17.CMX
    17.11+0.11+0.66%
    SIH17.CMX
    88.68+1.12+1.28%
    ^XAU
    2.620.00+0.19%
    HGH17.CMX
    52.33+0.96+1.87%
    CLG17.NYM
  • Bonds
    Bonds
    TreasuryYield (%)Yield Change
    1.94-0.01
    ^FVX
    2.47+0.01
    ^TNX
    3.05+0.01
    ^TYX