European Stocks Fall On Economic Concerns

on August 24 2012 3:52 AM

Most of the European markets fell Friday as investors were worried that the economic condition of the euro zone continued to weaken.

The French CAC 40 index dropped 0.20 percent or 6.85 points to 3425.71. Shares of BNP Paribas SA fell 1.19 percent and those of AXA SA declined 0.99 percent.

London's FTSE 100 index was down 0.18 percent or 10.11 points to 5766.49. Shares of Antofagasta PLC dropped 1.82 percent and those of Kazakhmys PLC were down 1.62 percent.

The German DAX 30 index fell 0.07 percent or 4.67 points to 6944.90. Shares of Volkswagen AG dropped 0.51 percent and shares of Linde AG declined 0.69 percent.

Spain's IBEX 35 was up 0.14 percent or 10.10 points to 7293. Shares of Inditex SA rose 1 percent and those of Acciona SA advanced 0.71 percent.

According to reports, Spain was in talks with the euro zone leaders over conditions for support to bring down its interest rates. Though nothing official in terms of specific amounts or concrete decision had been reported, this dampened the market confidence since it was taken as an indication that Spain's economic condition was worsening.

Investors felt that request from Spain for a financial support was only a matter of time as borrowing costs remained unsustainable. Spain will likely continue to wait for the ECB meeting on 6 September to know the modalities of the ECB market interventions, unless a sharp deterioration in market conditions until then, Credit Agricole said in a note.

Greek Prime Minister Antonis Samaras will meet German Chancellor Angela Merkel Friday in Berlin. Samaras is expected to provide Merkel with greater detail on how Greece will achieve the proposed 11.5 billion euros ($14 billion) of savings demanded by the Troika, which consists of the European Union, the European Central Bank and the International Monetary Fund.

Samaras is expected to provide the two leaders with greater detail on how Greece will achieve the proposed 11.5 billion euros ($14 billion) of savings demanded by the Troika.