European Stocks Decline


European stocks declined for a second day, led by technology companies and banks, on concern earnings will deteriorate as the economic slump deepens.

Logitech International SA sank 10 percent after reporting profit and sales that missed analysts’ estimates. Invensys Plc slid 4.7 percent as the company predicted second-half earnings will stagnate. BNP Paribas SA and Lloyds Banking Group Plc retreated more than 9 percent as Societe Generale SA and Merrill Lynch & Co. analysts cited concerns over the banks’ capital.

The Dow Jones Stoxx 600 Index lost 1.1 percent to 187.73 at 2:43 p.m. in London. The measure has declined 11 percent in the past ten days as companies from Deutsche Bank AG to Intel Corp. fueled concern the global recession will wipe out profit growth.

The Standard & Poor’s 500 Index sank 1.5 percent as State Street Corp. and Wells Fargo & Co. plunged. The MSCI Asia Pacific Index dropped 2.2 percent as Elpida Memory Inc. retreated.

National benchmark indexes fell in all 18 western European markets except Austria. Germany’s DAX declined 0.2 percent as SAP AG retreated. The U.K.’s FTSE 100 was little changed, while France’s CAC 40 Index lost 0.8 percent.


TradingEconomics.com, Bloomberg
1/20/2009 6:50:32 AM