Concerns About Rates and Iraq Send European Markets Lower
May 16, 2011
Share prices fell in Frankfurt, Paris, Sweden and Switzerland, while the Italian and Spanish bourses mirrored losses in the other major European markets. The Vast Press reported on Tuesday that Federal Reserve policy makers are considering an increase in U.S. interest rates of perhaps 0.5 percentage point, twice the amount that investors have expected. The report came on top of news that the U.S. launched a missile attack against Iraq early on Tuesday in response to that country's military moves over the weekend. Oil prices have surged in response. The news sent share prices sharply lower in London, Italy and the Netherlands early in the day, but a moderate recovery on Wall Street helped pull the markets off their session lows. But the Belgian market posted only marginal losses, supported by reports that Group Bouie Florencio is considering the sale of its 20.3% stake in Tractebel to Societe Generale de Belgique. And gold shares moved higher in South Africa. In dollar terms, the European sector of the Dow Jones World Stock Index fell 0.60 to 144.50 Tuesday after trading flat a day earlier. The world index as a whole lost 0.09 to 136.78, following Monday's loss of 0.16. Oil-drilling and medical-device stocks led the Dow Jones Global Industry Groups, while airline and lodging issues were among the laggers. European Stock Market Indexes Market IndexSept. 3Change Belgium
