Data provided by iNet BFA
Loading...
See More

European shares weaken

Dec 17 2012 02:25 Reuters

Related Articles

Markets cheer Japan conservatives' win

Yen falls ahead of Japan elections

Holiday 'on standby' for US traders

Oil up on China demand hopes

Asian shares mostly up after Fed move

Asia shares mixed, eye fiscal cliff talks

 

London - European shares fell at the start of what is likely to be a volatile week on Monday given uncertainty over US. budget talks.

Temporary power provider Aggreko was the top faller after its latest update.

The FTSEurofirst 300 was down 0.3% at 1,129.93 by 09:46 GMT, having dipped 0.1% in the previous session. Trading volumes stood at 18% of the 90-day daily average.

Many in the market believe a deal on the US budget will be struck, but any news to the contrary could open the way to fresh index falls, especially as traded volumes remain thin.

"We're a bit jittery here that there's not going to be significant progress... Ultimately I think we will get a deal, but all the risk is on the downside," Joe Rundle, head of trading at ETX Capital, said.

"Every day we tick on now people are going to get a bit more jumpy... I don't think there will be a full-on deal by the 31st of December... but I think if we're poles apart there's going to be a real issue (and the market) will come off really aggressively."

Automatic spending cuts and tax hikes are due to kick in, potentially damaging the US economy, at the end of the year unless an agreement is reached to avoid them.

Rundle reckons the FTSEurofirst 300 could come off as much as 7% in the event of disappointment.

Aggreko topped the index's fallers' list, slumping more than 16% after it warned on the outlook for its business in a trading update, prompting Investec Securities to cut its rating on the stock to "hold" from "buy".

"Today's news will be seen as a something of a setback... That said, we continue to believe that there are many structural drivers that should continue to drive earnings in the years to come," Investec said in a note.

Telecoms group KPN slid 13%, leading falls seen across the sector, after the Dutch state raised much more than expected in its auction of fourth generation (4G) wireless frequencies, with prices so high KPN cut its dividend for this year and next to afford its licences.

Vodafone was another significant faller, off 2.3%.

Follow Fin24 on Twitter, Facebook, Google+ and Pinterest.

markets
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

A cash flow crunch often occurs in small businesses trying to balance cash coming in with cash going out. Watch this video to help you improve.
 
 

Disregard of interest rate impact deplored

A Fin24 user protests what he sees as disregard of the broader impact of increased interest rates on those who cannot yet say "bring it on" with a smile.

 
 

Start saving...

No need to keep up with the Joneses
Where can you stash your cash?
Time the key for retirement saving
Dummy's guide to saving

Money Clinic

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