Forex Pros – European stock markets were broadly lower on Monday, as investors monitored escalating tensions in the Middle East and North Africa, while markets in the U.S. were to remain closed for a holiday.
During European morning trade, the EURO STOXX 50 dropped 1.03%, France’s CAC 40 slumped 0.91%, while Germany’s DAX was down 0.81%.
Over the weekend, violence escalated in Libya as protesters tried to topple the 42-year rule of Moammar Gadhafi. Demonstrations also took place in Morocco for the first time and continued in Bahrain and Iran.
Shares in the largest international oil company operating in Libya, Eni SpA tumbled 4.03% amid speculation that the government’s attacks on demonstrators will disrupt production in the North African country.
Meanwhile, shares in the financial sector performed poorly amid renewed concerns over the euro zone’s sovereign debt crisis.
Shares in Italy’s largest lender Unicredit tumbled 2.67%, Spain’s biggest bank Banco Santander slumped 1.64%, while Deutsche Bank saw shares drop 1.19%.
In earnings news, Danish brewer Carlsberg saw shares drop 3.02% after it said fourth quarter net profit fell 21% to EUR40.3 million. Sales in the quarter declined 1.6% to EUR1.79 billion, as a higher tax in Russia led to “substantial” stock-building.
However, shares in health-care giant Merck jumped 3.54% after it reported fourth quarter operating profits increased by 65% to EUR129.1 million. Revenue in the quarter climbed 20% to EUR2.55 billion.
In London, the commodity-heavy FTSE 100 eased up 0.07% as miners led gains after metal prices surged.
Shares in the world’s largest mining group BHP Billiton climbed 1.14%, gold miner Randgold Resources saw shares jump 2.48%, while silver producer Fresnillo rallied 4.25% after silver prices rose to a 31-year peak.
Meanwhile, shares in Invensys soared 4.41% after the Observer newspaper reported that several engineering companies, including Alstom and Siemens may bid for the British manufacturing company.
In the U.S., markets were to remain closed for the President’s Day holiday.
ForexPros.com
