By Polya Lesova, MarketWatch
LONDON (MarketWatch) — European stock markets dropped on Wednesday, breaking a recent string of strong gains, as bank shares across the continent posted steep losses.
The Stoxx Europe 600 index XX:SXXP -0.34% fell 0.5% to 249.9 in morning trading. It gained 4.5% over the previous four trading sessions.
Investors are awaiting the results of German and Portuguese debt auctions due later in the session.
Vestas Wind Systems A/S was the biggest loser in the Stoxx 600. Its shares sank 18% in Copenhagen trade after the wind-turbine maker said late Tuesday it now expects 2011 adjusted earnings to be zero compared with a previous forecast of around 255 million euros ($332 million).
Another big decliner was Italian bank UniCredit SpA IT:UCG -8.06% , which dropped nearly 10% in Milan after it said that it will sell shares at a 43% discount to the so-called theoretical ex-rights market price.
The fall in UniCredit shares weighed on Italy’s FTSE MIB index XX:FTSEMIB -1.27% , which dropped 1.5% to 15,418.
Other bank shares posted steep declines across Europe. In Portugal, Banco Comercial Portugues PT:BCP +1.33% dropped 5.3%, while in Spain Banco Santander STD +3.06% ES:SAN -4.33% fell 4.1% and BBVA SA ES:BBVA -2.78% BBVA +3.09% declined 3.2%.
Among other national benchmarks, Germany’s DAX 30 index DX:DAX -0.40% declined 0.6% to 6,128, led lower by a 3.1% drop for shares of Commerzbank AG DE:CBK -2.02% .
France’s CAC 40 index FR:PX1 -0.46% fell 0.8% to 3,219, with shares of telecommunications-equipment firm Alcatel-Lucent ALU -0.62% FR:ALU -3.04% down 4.8%.
Bucking the negative trend, the U.K.’s FTSE 100 index UK:UKX +0.15% edged up 0.1% to 5,705, led higher by oil major BP PLC BP +0.45% UK:BP +1.85% which gained 1.8%.
Shares of Next PLC UK:NXT -3.87% dropped 3.7% after the retailer issued a trading update.
Polya Lesova is chief of MarketWatch’s London bureau.
