European Markets Fall Amid Iraq Worries

By RTT News, 

( - The European markets are trading lower on Monday, after Eurozone inflation slowed as estimated in May. Violence in Iraq and the threat of Russia halting natural gas supplies to Ukraine impacted sentiment.

Europe faces gas supply disruptions after Russia and Ukraine failed to resolve a gas pricing dispute during Sunday talks in Kiev. Russia ships around a half of its gas exports to Europe through Ukraine.

Later in the session, trading could be influenced by a report on U.S. industrial production, ahead of the Federal Reserve's upcoming policy meeting on Wednesday.

Final data from Eurostat showed that inflation eased to 0.5 percent in May from 0.7 percent in April. The rate came in line with the flash estimate published on June 3. Month-on-month, prices fell 0.1 percent.

The Euro Stoxx 50 index of eurozone bluechip stocks is falling 0.48 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, is losing $0.25 percent.

The German DAX, the French CAC 40, the UK's FTSE 100 and Switzerland's SMI are losing between 0.1 percent and 0.4 percent.

In Frankfurt, K+S is losing 1.4 percent and Volkswagen is sliding 1.1 percent.

Deutsche Telekom and RWE are falling around 1 percent each.

SAP and HeidelbergCement are making moderate advances.

In Paris, Alcatel Lucent is dropping 1.6 percent and Orange is losing 1.4 percent.

Credit Agricole and Societe Generale are declining 1.6 percent and 1.4 percent, respectively.

Airbus and Safran are moderately lower. The two have decided to set up a joint venture for manufacturing space launchers.

In London, Smith & Nephew is losing 2.2 percent after US-based Medtronic decided to buy Dublin, Ireland-based Covidien.

Carnival is losing 1.8 percent and Persimmon is falling 1.7 percent.

Allocate Software, a provider of workforce and compliance optimization solutions, said it delivered another strong performance in the year. The stock is up 6 percent.

Biopharmaceutical company Actelion said its experimental lung disease drug Selexipag met primary endpoint in late-stage study. The stock is surging 14 percent in Zurich.

Vestas Wind Systems is losing 4.5 percent in Copenhagen. Barclays cut the stock to ''Underweight'' from ''Equalweight.'

The Asian stocks ended mixed as the turmoil in Iraq and the threat of Russia halting natural gas supplies to Ukraine sapped investors' appetite for risk.

In the U.S., futures point to a cautious open on Wall Street. In the previous session, the major averages rose about 0.3 percent each, as an upbeat guidance from tech giant Intel and merger news outweighed worries about escalating violence in Iraq.

Crude for July delivery is gaining $0.11 to $107.02 per barrel, while August gold is advancing $6.0 to $1280.1 a troy ounce.

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This article appears in: News Headlines

Referenced Stocks: ALU , BCS , COV , INTC , MDT

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