European stocks slid the most in
two months as Spain prepared to present its budget and Federal
Reserve Bank of Philadelphia President Charles Plosser said the
third round of bond buying may fail to stimulate growth. U.S.
index futures were little changed, while Asian shares fell.
Acciona SA (ANA) sank 5.1 percent, leading Spanish builders lower a day before the government presents its budget for next year. Banco Santander SA (SAN), Spain’s largest lender, retreated 3.2 percent. Anglo American Plc (AAL) lost 3.5 percent, contributing the most to a decline by a gauge of mining companies, after saying that it plans to reduce its production of coal.
The Stoxx Europe 600 Index plunged 1.3 percent to 272.1 at 12:21 p.m. in London, its largest drop since July 23. The gauge has still rallied 16 percent from this year’s low on June 4 as European (SXXP) Central Bank policy makers approved a plan to buy the bonds of the most-indebted members of the euro area. Futures on the Standard & Poor’s 500 Index slid 0.1 percent, while the MSCI Asia Pacific Index lost 1.3 percent.
“Markets have started to turn,” said Andreas Utermann, global chief investment officer at Allianz Global Investors, which oversees $360 billion, in a television interview. “People are facing up to the reality of a macro economy that’s not good. We’ve seen QE3 and now we’re back to the real world. Monetary easing doesn’t necessarily produce growth.”
Plosser said yesterday after the close of European trading that the Fed’s latest round of quantitative easing may jeopardize the central bank’s credibility. The S&P 500 posted its biggest drop since June 25.
Read more: http://www.bloomberg.com/news/2012-09-26/european-stock-futures-drop-as-plosser-warns-on-stimulus.html
Acciona SA (ANA) sank 5.1 percent, leading Spanish builders lower a day before the government presents its budget for next year. Banco Santander SA (SAN), Spain’s largest lender, retreated 3.2 percent. Anglo American Plc (AAL) lost 3.5 percent, contributing the most to a decline by a gauge of mining companies, after saying that it plans to reduce its production of coal.
The Stoxx Europe 600 Index plunged 1.3 percent to 272.1 at 12:21 p.m. in London, its largest drop since July 23. The gauge has still rallied 16 percent from this year’s low on June 4 as European (SXXP) Central Bank policy makers approved a plan to buy the bonds of the most-indebted members of the euro area. Futures on the Standard & Poor’s 500 Index slid 0.1 percent, while the MSCI Asia Pacific Index lost 1.3 percent.
“Markets have started to turn,” said Andreas Utermann, global chief investment officer at Allianz Global Investors, which oversees $360 billion, in a television interview. “People are facing up to the reality of a macro economy that’s not good. We’ve seen QE3 and now we’re back to the real world. Monetary easing doesn’t necessarily produce growth.”
Plosser said yesterday after the close of European trading that the Fed’s latest round of quantitative easing may jeopardize the central bank’s credibility. The S&P 500 posted its biggest drop since June 25.
Read more: http://www.bloomberg.com/news/2012-09-26/european-stock-futures-drop-as-plosser-warns-on-stimulus.html
No comments:
Post a Comment