European Stocks Sink as Oil Prices Decline and Euro WeakensBy twocents@thestreet (Jonathan Braude) LONDON ( The Deal) -- European markets sank in morning trading on Monday, as a falling oil price, a weakening euro and a further slowdown in German inflation all added to doubts about the regions recovery. For many, the gloomy outlook was madeBy twocents@thestreet (Jonathan Braude) LONDON ( The Deal) -- European markets sank in morning trading on Monday, as a falling oil price, a weakening euro and a further slowdown in German inflation all added to doubts about the regions recovery. For many, the gloomy outlook was made worse by a story in the influential German newsweekly Der Spiegel that Berlin would be ready to see Greece quit the eurozone if the populist left-wing party Syriza wins elections later this month and tries to renege on the countrys reform program. The German government said in response that it expects Greece to stay in the eurozone, and said it is working on the assumption that Greece will abide by the conditions of its 2012 bailout by the European Union and International Monetary Fund. But the row signals negotiations on restructuring the Greek debt will likely involve some difficult brinksmanship by all concerned if Syriza wins. Must Read: 11 Best Small-Cap Technology Stocks That Could Hit It Big in 2015 Meanwhile, the markets were waiting to see if the European Central Bank is ready to announce quantitative easing measures later this month as the eurozone economy appears to be heading for deflation. Economists remain divided over whether massive easing would really do much to revive growth, even if it prevented a deflationary spiral. Investors are also watching out for a non-binding opinion from the European Court of Justice mid-month on whether a so-far unused regime allowing the European Central Bank to buy sovereign debt on the secondary market to help a eurozone member country in trouble is constitutional. If not -- and the German constitutional court has already come out against it -- then some aspects of the way Europe handles potential future crises may have to be rethought. In London, shares in retailer Marks & Spencer fell 2.2% to 466.5 pence on fears that sales figures for the Christmas period will make grim reading when it releases a trading statement later this week. But shares in engineering group Aveva rose 1.7% to 1,295 pence, after it announced an agreement to buy software company 8over8, which provides risk management technology to the oil & Gas, mining and manufacturing industries. Shares in Rangers International Football Club were up 17.8% at 26.5 pence after the troubled Scottish club confirmed an approach from U.S. financier and basketball team owner Rorbert Sarvar that could lead to a takeover. In Dublin, budget airline Ryanair topped the list of risers on the Irish Stock Exchange, soaring 3% to an all-time high of 10.11 euros, after reporting a 20% increase in traffic year-on-year for December. Other airlines will also benefit from a drop in the oil price to $55 a barrel, but Ryanair has also launched a charm offensive over the past year to woo back passengers lost to its previous reputation for rudeness and poor customer service. The FTSE 100 was down 0.76% at 6,498, while in Frankfurt the DAX was down 0.46% at 9,720. In Paris, the CAC 40 was down 0.73% at 4,221. In Hong Kong, the Hang Seng Index ended the day 0.57% lower at 23,721.32. In Japan, the Nikkei 225 closed down 0.24% at 17,408.71 and Chinas Shanghai Composite bucked the trend with a 3.61% rise to 3,351.35. Must Read: 8 Recession-Proof Stocks to Prepare Your Portfolio for the Next Cycle Click to view a price quote on MAKSY. ift.tt/1gB4pon
Posted on: Mon, 05 Jan 2015 12:57:22 +0000
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