European Stocks Fall on Italy Downgrade as Oil, Metals Decline
By Grant Smith - Mar 11, 2013 6:01 AM ET
European stocks fell from a 4 1/2- year high and Italian bonds retreated after Fitch Ratings downgraded the nation’s debt. Oil declined as Saudi Arabia boosted output, and metals slipped after China’s industrial production trailed estimates.
The Stoxx Europe 600 Index dropped as much as 0.3 percent as of 9:45 a.m. in London, while Standard & Poor’s 500 futures fell 0.1 percent. Italy’s 10-year yield rose four basis points to 4.64 percent. Copper lost 0.7 percent and zinc as much as 1.5 percent in London. West Texas Intermediate crude fell from a one-week high. The Hungarian forint weakened amid changes at the country’s central bank.
Fitch cut Italy’s debt rating after the close of equity markets on March 8 as European Union leaders prepared for a March 14-15 summit to discuss financial-rescue terms for Cyprus. China’s industrial output had the weakest start to a year since 2009 and retail sales growth slowed, data in the past two days showed. The Dollar Index (SXXP) traded near its highest level in seven months before a report this week that economists said will show retail sales improved.
“I do get a sense that the market has extended itself compared to the potential threat to the system,” said Yianos Kontopoulos, chief investment officer in Athens at Eurobank Ergasias SA. “All these issues, like the Fitch rating, will be used by the market to sell.”
more:
http://www.bloomberg.com/news/2013-03-11/european-stocks-fall-on-italy-downgrade-as-oil-metals-decline.html
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