A week of uncertainty and lackluster responses to central bank and G20 efforts sees European benchmark indexes set to end the week in the red today, as a move by Moody's rating agency to downgrade 15 of the world's top banks, although expected, still puts on the pressure.
The German DAX and Dutch AEX lead the downward charge, down around 1.1% and 0.9%, respectively, at the time of writing. The Spanish IBEX is the one notable exception, however. It’s up about 0.5%, boosted by the banking sector after the publication of stress test results was taken as credible proof by the market that the 100 billion euro allocated by the EU for the country's banks will be more than adequate to help recapitalize the sector.
Slightly weaker-than-expected German IFO Business Confidence data this morning added to days of disappointing numbers for the eurozone's leading economy, and industrial stocks are now the main underperformers on the DAX, with HeidelbergCement down around 3.5% and Infineon Technologies 3% in the red.
Germany's Siemens is also under additional pressure, currently down just less than 1% as news emerges that the U.K.'s Invensys, for which Siemens has long been rumored to be a potential buyer of their rail division, has received a preliminary approach from Emerson Electric -- although the company did say talks are now over.
The weakness in industrials is reflected across the majority of European bourses, with Ireland's CRH
On a more positive note, the telecom sector is seeing a boost across European markets amid news that America Movil
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