• Caught in the debt trap?

    Help us help you by taking our second annual Debt survey and you could win R3 000.

  • Rich man, poor man

    Culture change from below is the only way to overcome poverty, says Leopold Scholtz.

  • Tech bubble talk

    After the tech euphoria of 2013, the fast-moving sector has hit a speed bump.

Data provided by McGregor BFA
All data is delayed
Loading...
See More

European shares drop on Spain downgrade

Mar 10 2011 14:12 Sapa

Related Articles

Asian stocks slip as China data weighs

Stocks steady as investors eye oil

US stocks mixed on oil price shifts

Equities lifted as oil price eases

Asian stocks feeling the heat

Strong banks, commodities lead FTSE rally

 

London - Europe's leading stock markets retreated Thursday as eurozone debt fears sparked by a credit downgrade to Spain overshadowed news of positive company earnings, traders said.

London's FTSE 100 index of top shares slid 1.01% to 5 937.17 points in late morning trade as dealers awaited the Bank of England's latest decision on British interest rates due at 1200 GMT.

Frankfurt's DAX 30 fell 0.83% to 7 073.09 points and the Paris CAC 40 shed 0.68% to 3 966.60.

The Stoxx 50 index of leading eurozone companies lost 0.87% to 2 909.48 points.

"Markets are taking another pasting ... mainly on the back of Spain getting downgraded by Moody's," said Spreadex trader Chris Purdy.

"Market focus has now swung from panic over high oil prices derailing the world economy ... to European debt. It is quiet bizarre how the market chooses to ignore these debt problems and then become spooked when they resurface.

"They have not gone away and if anything will become worse, as we are seeing," Purdy added.

Moody's sliced Spain's credit rating Thursday and warned it may do so again, as it raised the alarm over Spanish banking woes and spendthrift regions.

New York-based Moody's cut the long-term debt rating by a notch to "Aa2" with a negative outlook, a serious setback to Spain's efforts to quell fears it may need an international financial rescue.

The downgrade came on the eve of a eurozone summit in Brussels to discuss bolstering the euro's defences against speculation that weak economies such as Portugal may follow Ireland and Greece into crises.

The Madrid stock market's IBEX-35 index was meanwhile down 1.30% at 10 423.4 points in midday trade.

In company news, the world's leading luxury carmaker BMW reported record profits and sales for 2010 on Thursday and said it expected more of the same this year.

The group, which also owns the Mini and Rolls-Royce car brands, said net profit soared to €3.23bn ($4.45bn) from €210m in 2009.

BMW's share price rose 0.60% to 58.49 euros in Frankfurt.

Elsewhere, British investment manager Schroders jumped 1.11% to 1 820 pence after its net profits more than tripled to £307.9m ($497m) in 2010 as the global economy recovered.

Schroders said it expected the "economic recovery to continue in 2011 which should support asset prices over the year."

spain  |  wall street  |  markets  |  bonds
NEXT ON FIN24X

 
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
0 comments
Add your comment
Comment 0 characters remaining
 

Company Snapshot

We're Talking About: Small Business

Standard Bank is looking for 12 entrepreneurs to participate in a 10-part TV series. They could win a R1m investment into their dream.
 
 

The rich will pay - Mpofu

The EFF in Gauteng will focus all its energy on improving the lives of the poor, the party's premier candidate Dali Mpofu says.

 
 

Latest elections multimedia

Watch what happened when we blindfolded Helen Zille and asked her to eat random things
13 days to elections - news you need to know
11 Julius Malema quotes you'll never forget
DA won't get 30% - Zille

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...
Loading...