Date: Tuesday 22 Jun 2010
European markets took a step back on Tuesday for the first time in two weeks as profit takers moved in, though losses were trimmed in the afternoon session.Banking shares were out of sorts after ratings agency Fitch downgraded the credit rating of French bank BNP Paribas by one notch to AA-. French peers Societe Generale and Credit Agricole fell even more than BNP Paribas while in Frankfurt are the three main fallers in Paris, while Commerzbank and Deutsche Bank also lost ground.
Across the markets, the Dax in Frankfurt recovered in the afternoon to limit its loss to 23 points to close at 6,269. The Cac in Paris fell 30 points to 3,705 while the Swiss market index tumbled 56 points to 6,463.
Air France finished slightly higher after JPMorgan Cazenove upped its stance on the carrier to overweight from underweight.
Dutch insurance giant Aegon came under selling pressure. The company warned today of job losses among its UK life and pensions employees as part of its plans to cut UK costs by 25%.
On the economic front, German business sentiment rose to its highest level in more than two years in June, according to a closely watched survey.
The Munich-based Ifo Institute said its business climate index rose from 101.5 in May to 101.8 this month, the highest level since May 2008. The reading was better than analysts’ expectations of 101.0-101.2. Meanwhile, the current situation index increased to 101.1 from 99.4.
In the UK chancellor George Osborne “get touch” budget was largely in line with expectations, and some sectors even rallied after being treated more kindly than feared by the coalition government’s first Budget. Retailers welcomed the delayed introduction of the widely expected VAT increase while housebuilders firmed up after the hike in capital gains tax was less severe than expected.CAC 40 - Risers
Danone (BN) € 45.29 +1.76%
Cap Gemini (CAP) € 39.51 +1.57%
Unibail-Rodamco (UL) € 141.20 +1.51%
Sanofi-Aventis (SAN) € 50.68 +1.36%
L'Oreal (OR) € 83.61 +0.86%
Michelin (ML) € 61.31 +0.54%
EADS (EAD) € 17.97 +0.50%
Essilor International (EI) € 49.75 +0.40%
Pernod Ricard (RI) € 67.45 +0.19%
Alstom (ALO) € 41.98 +0.18%
CAC 40 - Fallers
Credit Agricole (ACA) € 9.49 -4.73%
Societe Generale (GLE) € 37.35 -3.96%
Saint Gobain (SGO) € 34.03 -2.63%
Peugeot (UG) € 22.70 -2.39%
Technip (TEC) € 52.96 -2.34%
Alcatel-Lucent (ALU) € 2.27 -1.99%
BNP Paribas (BNP) € 49.35 -1.94%
Total (FP) € 39.98 -1.83%
Schneider Electric (SU) € 90.76 -1.60%
Vallourec (VK) € 152.75 -1.52%
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