European stocks fell from a 4 1/2- year high as Fitch Ratings downgraded Italy and China’s retail sales and industrial output missed forecasts.
Storebrand (STB) ASA slumped 6.3 percent after Norway’s second- largest insurer said it must set aside more money to meet stricter rules on group pension plans. OMV (OMV) AG and ICAP Plc dropped more than 1.5 percent as analysts downgraded the shares. Ladbrokes Plc (LAD) jumped the most in almost two years after signing a deal with Playtech Ltd. to develop its Web business.
The Stoxx Europe 600 Index lost 0.2 percent to 294.99 at 2:31 p.m. in London. The gauge has still surged 5.5 percent this year as U.S. lawmakers agreed on a compromise budget and amid optimism that central banks around the world will continue stimulus measures to support the economic recovery.
“The downgrade in Italy will lead to some nervousness that more intervention will be needed, especially as it is clear that Cyprus also needs a bail out.” Felicity Smith, a London-based fund manager at Bedlam Asset Management Plc, which oversees about $500 million, wrote in an e-mail. “Ultimately, Germany will be the main contributor to the cost of this. I just see today’s downgrade as a bit of realism returning to the market, rather than a reason to panic.”
The Stoxx 600 rallied 2.3 percent last week, the biggest advance in two months, as employers in the U.S. increased payrolls more than forecast and optimism mounted that central banks will continue to stimulate their economies. The index closed at the highest level since June 2008.
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Storebrand (STB) ASA slumped 6.3 percent after Norway’s second- largest insurer said it must set aside more money to meet stricter rules on group pension plans. OMV (OMV) AG and ICAP Plc dropped more than 1.5 percent as analysts downgraded the shares. Ladbrokes Plc (LAD) jumped the most in almost two years after signing a deal with Playtech Ltd. to develop its Web business.
The Stoxx Europe 600 Index lost 0.2 percent to 294.99 at 2:31 p.m. in London. The gauge has still surged 5.5 percent this year as U.S. lawmakers agreed on a compromise budget and amid optimism that central banks around the world will continue stimulus measures to support the economic recovery.
“The downgrade in Italy will lead to some nervousness that more intervention will be needed, especially as it is clear that Cyprus also needs a bail out.” Felicity Smith, a London-based fund manager at Bedlam Asset Management Plc, which oversees about $500 million, wrote in an e-mail. “Ultimately, Germany will be the main contributor to the cost of this. I just see today’s downgrade as a bit of realism returning to the market, rather than a reason to panic.”
The Stoxx 600 rallied 2.3 percent last week, the biggest advance in two months, as employers in the U.S. increased payrolls more than forecast and optimism mounted that central banks will continue to stimulate their economies. The index closed at the highest level since June 2008.
For more Information Plz log on to www.rpshares.com
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