Paris weakest among the biggest markets to cap off a bearish week
By Barbara Kollmeyer, MarketWatch
MADRID (MarketWatch) — European stocks dropped on Friday and posted a weekly loss amid continued worries about the sovereign-debt crisis in the euro zone.
The Stoxx Europe 600 index XX:SXXP -0.43% fell 0.4% to 233.71.
Predrag Dukic, senior equity salesman at CM Capital Markets, said several European futures contracts expired on Friday, but because many contracts were negotiated at higher levels, investors are not selling yet.
“Overall, markets would have been significantly lower if it weren’t for that,” Dukic said.
The Stoxx 600 index fell 2.8% in a week that saw investors continuing to fret over the sovereign-debt crisis.
International Monetary Fund chief Christine Lagarde said on Thursday that the global economic outlook was “quite gloomy.” She called for international help to battle the sovereign-debt crisis, which some observers read as a sign the situation was worsening.
“I think after this week you’ll see less volatility, because people will be away on holidays, but when the new year enters, we’ll see more volatility and more of this saga,” said Dukic.
A big decliner on the Stoxx 600 index was Swedish wireless-equipment maker L.M. Ericsson AB ERIC -2.73% SE:ERICB -3.69% , shares of which fell 3.7% after UBS cut its rating to neutral from buy.
The U.K.’s FTSE 100 index UK:UKX -0.25% fell 0.3% to 5,387.34, with hedge-fund manager Man Group PLC UK:EMG -4.42% moving down 4.4%.
Mining stocks advanced in London as base- and precious-metals prices climbed following sharp falls earlier this week. Rio Tinto PLC UK:RIO +1.02% RIO +1.39% rose 1% and Xstrata PLC UK:XTA +2.32% added 2.3%.
Steel maker ArcelorMittal SA NL:MT +2.02% rose 2% in Amsterdam.
Chemicals group Lanxess AG DE:LXS +0.61% rose 2.2% after Morgan Stanley lifted its rating on the shares to overweight from equalweight. Also in that sector, shares of BASF SE DE:BAS +1.15% added 1.1% as Solvay SA BE:SOLB +2.39% gained 2.4%.
Financials in focus
Financials remained in the spotlight for investors.
Fitch Ratings cut the issuer default and viability ratings of BNP Paribas SA FR:BNP -0.65% and the viability rating of Societe Generale SA FR:GLE +1.47% late Thursday.
SocGen’s shares rose 1.5% in Paris, while BNP fell 0.6%.
