European shares slipped 3.3 percent on Thursday to record their biggest one-day percentage drop in seven months as concerns about debt problems in Dubai weighed on the market, with banks the major fallers. The pan-European FTSEurofirst 300 index of top shares closed down 33.81 points at 988.14 - its lowest close in three weeks.
"The Dubai worries have played a major role in rattling market sentiment at a time when the US is closed and we are not getting anything from anywhere else," said Peter Dixon, economist at Commerzbank. HSBC, Banco Santander, BNP Paribas, Barclays and Credit Suisse were down 3.3 to 8 percent. Other financials moved lower on Dubai exposure concerns. London Stock Exchange fell 7.4 percent and Dutch insurer Aegon lost 7.7 percent.
Shares in publishing and events group Informa, which has many Middle Eastern trade fairs, fell about 9.8 percent. Porsche lost 5.1 percent as traders pointed to worries that Qatar Investment Authority may cut its 10 percent stake in the carmaker to boost liquidity after the Dubai government asked for a debt standstill on two of its firms.
Oil stocks featured among the worst performers as oil fell 2.3 percent. BG Group, BP, Royal Dutch Shell and Total were down 2.4 to 3.6 percent. Miners slipped as metal prices retreated. Anglo American, Antofagasta, BHP Billiton, Eurasian Natural Resources Corporation, Rio Tinto and Xstrata were 4.2 to 6.8 percent lower. Across Europe, the FTSE 100 index was down 3.2 percent, Germany's DAX was 3.3 percent lower and France's CAC 40 was down 3.4 percent.
Comments
Comments are closed.