| CATEGORY: MARKET REPORT - EUROPE CLOSE SECTOR: FOSSIL FUELS AND DISTRIBUTION |
European close: Shares stuck in the red |
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Mon 30 Nov 2009
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LONDON (SHARECAST) - Europe’s leading exchanges closed in the red as investors remained cautious about the situation in Dubai.
Across the markets, the Dax closed 60 points lower in Frankfurt at 5,626, while the Cac was 41 points down at 3,680. The Swiss market dropped 76 points to 6,261.
Stocks in the United Arab Emirates suffered record one-day losses on Monday as investors got their first chance to react to last week’s debt default scare.
The savage slump reflected pent-up selling pressure following the Eid holiday, which has seen markets closed since state-owned Dubai World threatened to default on its debt.
Dubai’s leading index tumbled more than 7%, its worst day in over a year, with the National Bank of Abu Dhabi plunging about 10%, but an 8.3% plunge on the Abu Dhabi exchange was its biggest single-day decline ever.
In Europe, oil producers were among the main fallers. Royal Dutch Shell, Eni and Total dropped as fears about the potential impact of any debt default by Dubai slammed oil prices on Friday. However, oil prices have since recovered a little.
Financials were also on offer, with Credit Agricole, Commerzbank, UBS and Zurich Financial in the red.
Elsewhere, Bank of Ireland is to join the National Asset Management Agency (NAMA) asset acquisition programme.
The bank’s announcement follows hot on the heels of a similar announcement on Monday by its fellow Irish bank, Allied Irish Banks (AIB).
The sector was also hit my press reports claiming that thirty global financial institutions are said to have been selected for cross-border supervision by regulators.
The Financial Times reported that a number of major insurers are included in the list, such as Axa, Aegon, Allianz, Aviva, Zurich and Swiss Re, as well as 24 banks from the UK, continental Europe, North America and Japan.
In economic news, consumer prices in the 16-country eurozone rose in November for the first time in seven months. Price inflation rose by 0.6% year-on-year after falling 0.1% in October, European Union statistics office Eurostat said. Economists were looking for a 0.4% gain.
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