In Europe: Stocks Fall Amid Signs of Slower Growth

30 September 2011


More signs that all is not well in the region…look out for the word “recession” in the article

European stocks fell, trimming the Stoxx Europe 600 Index’s largest weekly advance in 14 months, as reports on Chinese manufacturing and German retail sales added to concern the economy is slowing. Asian shares and U.S. index futures declined.

Deutsche Bank AG (DBK) lost 7.1 percent as Handelsblatt reported that Germany’s biggest lender may lower its profit target. Metro AG (MEO) fell 4.2 percent after German retail sales declined the most in more than four years in August. Royal Philips Electronics NV tumbled 5.7 percent as HSBC Holdings Plc cut its earnings estimates for the company.

The Stoxx 600 fell 1.6 percent to 225.24 at 12:51 p.m. in London. The measure has rallied 4.2 percent this week as policy makers increased efforts to contain the region’s debt crisis and U.S. jobs and growth data exceeded forecasts. The gauge is still heading for the biggest quarterly decline since 2008, having plunged 18 percent since the end of June. The index has dropped 5.3 percent in September, a fifth straight month of losses.

“The situation is quite dark right now,” said Philipp Musil, who helps manage about $11 billion at Semper Constantia Privatbank AG in Vienna. “We’re very cautious about equities. All in all the figures are not good and many investors think we’re going straight into a recession.”

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