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European Shares Drop on Tapering Fears
By: MT Newswires
European stocks slip after strong US data on Monday sparked fears that the Fed will begin to taper its bond-buying program as early as this month.
Around the region, the number of people filing for jobless benefits in Spain dropped by 2,475 from October to 4.8 million to register the first-ever decline in November. Over the last 12 months, the number has fallen by 98,909.
Eurozone producer prices fell by 0.5% from September, and were 1.4% lower than in October 2012. That was the largest drop over a 12-month period since December 2009. The decline in prices over the month and year was larger than expected.
Data firm Markit and the Chartered Institute of Chartered Surveyors' monthly construction purchasing managers index in the UK rose to a balance of 62.6 in November, the highest level since August 2007 and up from October's 59.4.
French shares also came under some pressure after Credit Suisse Group AG cut its rating on French stocks to underweight from benchmark.
In ADR news, HSBC ( HBC ) was cut to neutral from buy at Nomura.
BP ( BP ) may be saved from making hundreds of millions of dollars in compensation payments stemming from its 2010 oil spill in the Gulf of Mexico. An Appeals court sent a case back to the lower courts to consider causation and halted for now any payments to any business that can't trace its injury directly back to the spill.
Smith & Nephew ( SNN ) is raised to overweight from equalweight at Morgan Stanley.
Orange ( ORAN ) slips after smaller rival Iliad launched a low-cost 4G mobile broadband service, sparking fears of more competition.
Sanofi ( SNY ) eases after the company said tests showed its U300 treatment wasn't more effective than the company's best-selling Lantus diabetes drug in a test of patients not already taking insulin.
The FTSE-100 was last down 0.95% at 6,532.43, the DAX down 1.9% at 9,223.40 and the CAC-40 down 2.65% at 4,172.44.