European stocks fell, led by banks after the ECB set out plans
for a new, tougher stress test. Pressure also stemmed from fears of
tighter policy in China, amplified by reports that some of its big
banks were tripling write-offs on bad loans.
The benchmark seven-day repo contract, which had been steadily
sliding since October 9, spiked in the morning session, a day after
a policy adviser to the People's Bank of China (PBOC) told Reuters
it was weighing tightening measures.
The Nikkei also declined on a stronger yen and Australia on
fading hopes for a rate cut after higher-than-expected inflation
Around the region, the ECB said it will require lenders to have
a capital ratio of 8% and changed the rules for what qualifies as
In ADR news, STMicroelectronics (
) dropped after reporting a $142 million quarterly net loss. It
took a $120 million impairment charge in Q3 and delayed a
profitability target after splitting up its venture with Ericsson
) fell after Q3 China sales fell 61%. The Chinese authorities have
started an investigation into corruption by the company.
The FTSE-100 was last down 0.32% at 6,674.48, the DAX down 0.31%
at 8,919.86 and the CAC-40 down 0.81% at 4,260.66.