European Stocks Fall On Global Growth Concerns

 
on October 10 2012 4:06 AM

European markets fell Wednesday as investor sentiment turned negative due to renewed concerns about the debt burden faced by the euro zone and weakening global economic growth.

France’s CAC 40 index was down 0.14 percent or 4.62 points to 3378.16.  Shares of Legrand SA fell 0.72 percent, and those of Danone SA dropped 0.59 percent.

London’s FTSE 100 index fell 0.28 percent or 16 points to 5794.25. Shares of Aggreko PLC dropped 1.88 percent, and those of TESCO PLC were down 1.42 percent.

The German DAX 30 index dropped 0.24 percent or 17.01 points to 7217.52. Shares of SAP AG fell 0.86 percent and shares of Continental AG declined 0.36 percent.

Spain's IBEX 35 was down 0.56 percent or 43.20 points to 7702.20. Shares of Abengoa SA fell 4.74 percent, and those of Bankia SA declined 2.45 percent.

The visit by German Chancellor Angela Merkel to Athens was accompanied by reassuring statements from Germany. She said that Greece had already done a lot to restore its competitiveness. Though more is to be done, she felt confident that the process would end in success.

Meanwhile, the International Monetary Fund, while releasing its Global Financial Stability Report Wednesday, warned that the debt crisis in the euro areas continued to be a major threat to global financial stability.

"Despite many important steps already taken by policy makers, this agenda remains critically incomplete, exposing the euro area to a downward spiral of capital flight, breakup fears and economic decline," the IMF said.

The IMF stressed the need for the European policy makers to take additional measures to reinstate economic and financial confidence. "Further efforts are needed to gain lasting stability. The choice today is between making the necessary but tough policy and political decisions, or delaying them once more in the false hope that time is on our side," Jose Vinals, director of the IMF's monetary and capital markets department, said. 

Share this article