Open

Coming up

Don't miss

Replay


LATEST SHOWS

TALKING EUROPE

Nigel Farage, Leader of the UK Independence Party

Read more

TALKING EUROPE

Endocrine disruptors: Is the EU doing enough to protect its citizens' health?

Read more

WEB NEWS

Israelis taking bomb shelter selfies

Read more

THE INTERVIEW

Pavlo Klimkin, Ukrainian Foreign Minister

Read more

THE INTERVIEW

Raed Fahmi, former Iraqi Minister of Science and Technology

Read more

IN THE PAPERS

Germany's World Cup title

Read more

FASHION

Paris, Haute Couture Fall/Winter 2014-2015

Read more

BUSINESS DAILY

Farnborough air show takes off but F-35 jet is grounded

Read more

IN THE PAPERS

Bastille Day celebrations

Read more

  • France commemorates WWI centenary on Bastille Day

    Read more

  • In pictures: 2014 World Cup historic moments

    Read more

  • Kremlin mulls 'retaliatory strikes' after death of Russian civilian

    Read more

  • Boules and booze: Bastille Day à la New Yorkaise

    Read more

  • Senegal honours the soldiers who fought for France in WWI

    Read more

  • Clashes erupt in Paris as thousands march to support Palestinians

    Read more

  • Shipwrecked Costa Concordia successfully refloated

    Read more

  • Germany defeat Argentina 1-0 to win fourth World Cup title

    Read more

  • Paris’s Bastille Day fireworks ‘a homage to victims’ of WWI

    Read more

  • Thousands flee northern Gaza after Israeli warning

    Read more

  • Major differences remain as deadline looms in Iran nuclear talks

    Read more

  • Rival Libyan militias exchange heavy fire at Tripoli airport

    Read more

  • French military to extend Mali 'counterterrorism' operations into Sahel

    Read more

Europe

European stocks fall under weight of Japan's crisis

©

Text by News Wires

Latest update : 2011-03-15

European shares tumbled under the weight of Japan's nuclear power plant crisis in Tuesday, sliding to their lowest point in 14 weeks.

REUTERS - European shares fell to their lowest in 14 weeks on Tuesday after Japan warned of significantly higher radiation levels following explosions at one of its quake-stricken nuclear power plants.

 Broker Nomura said continued uncertainty regarding the efforts to stabilise certain nuclear facilities would keep stocks under pressure but that the stock market could eventually recover relatively quickly.
 
Appetite for risky assets such as equities fell further, with the VDAX-NEW volatility index surging 40 percent to its highest in more than nine months. Japanese stocks plunged more than 10 percent, with the two-day fall wiping $620 billion off the market.
 
The FTSEurofirst 300 index of top European shares fell for a fifth straight session and was down 3.3 percent at 1,072.82 points at 0933 GMT after falling to a low of 1,067.18, the lowest level since early December.
 
"The market will do its best to price in the worst-case scenario and we will move forward from there. But the situation is very fluid and changing from hour to hour, and we have also got events in the Middle East to consider," said Keith Bowman, equity analyst at Hargreaves Lansdown.
 
"The Japanese funds have a considerable amount of foreign debt, and there are concerns that the events may cause them to sell some of their debts and repatriate the funds back home."
 
With low levels of radiation floating towards Tokyo, Japanese Prime Minister Naoto Kan urged people within 30 km (18 miles) of the facility north of the capital to remain indoors.
 
Automakers' stocks were the worst performers, with the European sector index down 5 percent following plant closures and on concerns about the supplies of auto parts. BMW fell 5.1 percent, while Daimler AG slipped 5.7 percent.
 
"Before the earthquake, the markets spent a long time range-bound, so the break lower has caught a lot of bulls off guard. But there has been some shorting of insurers in the latter part of yesterday and this morning," said Angus Campbell, head of sales at Capital Spreads.
 
The STOXX Europe 600 Insurance index fell 3.4 percent, with AXA down 3.2 percent and Prudential falling 4.1 percent.

 

Date created : 2011-03-15

  • JAPAN

    Stock market tumbles over investor worries

    Read more

Comments

COMMENT(S)