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luni, 23 mai 2011
Ex-divs to take 1 point off FTSE 100 on May 25
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Sony estimates FY 2010/11 net loss, revises from profit
TOKYO | Mon May 23, 2011 4:41am EDT
TOKYO May 23 (Reuters) - Sony on Monday changed its earnings estimate for the year to March 2011 to a net loss of 260 billion yen ($3.2 billion) from a profit of 70 billion, in the company's first indication of the financial impact of the devastating March earthquake and tsunami.
The company maintained its estimate of an operating profit of 200 billion yen, which compares with analysts' consensus of 197 billion yen, according to a SmartEstimate by ThomsonReuters I/B/E/S. SmartEstimates place additional weight on recent forecasts by top-rated analysts.
The maker of Bravia televisions and Vaio computers is set to announce its January-March earnings on Thursday.
Sony factories in northeastern Japan were among those damaged in the March 11 disaster, which also snarled the electronics industry's supply chain and triggered a plunge in domestic consumption.
Many of Sony's rivals, including Panasonic Corp , have yet to issue forecasts for the current financial year to March 2012, due to lingering uncertainty over the effects of the quake. ($1 = 81.710 Japanese Yen) (Reporting by Isabel Reynolds; Editing by Edmund Klamann)
TOKYO | Mon May 23, 2011 4:41am EDT
TOKYO May 23 (Reuters) - Sony on Monday changed its earnings estimate for the year to March 2011 to a net loss of 260 billion yen ($3.2 billion) from a profit of 70 billion, in the company's first indication of the financial impact of the devastating March earthquake and tsunami.
The company maintained its estimate of an operating profit of 200 billion yen, which compares with analysts' consensus of 197 billion yen, according to a SmartEstimate by ThomsonReuters I/B/E/S. SmartEstimates place additional weight on recent forecasts by top-rated analysts.
The maker of Bravia televisions and Vaio computers is set to announce its January-March earnings on Thursday.
Sony factories in northeastern Japan were among those damaged in the March 11 disaster, which also snarled the electronics industry's supply chain and triggered a plunge in domestic consumption.
Many of Sony's rivals, including Panasonic Corp , have yet to issue forecasts for the current financial year to March 2012, due to lingering uncertainty over the effects of the quake. ($1 = 81.710 Japanese Yen) (Reporting by Isabel Reynolds; Editing by Edmund Klamann)
TOKYO | Mon May 23, 2011 4:41am EDT
TOKYO May 23 (Reuters) - Sony on Monday changed its earnings estimate for the year to March 2011 to a net loss of 260 billion yen ($3.2 billion) from a profit of 70 billion, in the company's first indication of the financial impact of the devastating March earthquake and tsunami.
The company maintained its estimate of an operating profit of 200 billion yen, which compares with analysts' consensus of 197 billion yen, according to a SmartEstimate by ThomsonReuters I/B/E/S. SmartEstimates place additional weight on recent forecasts by top-rated analysts.
The maker of Bravia televisions and Vaio computers is set to announce its January-March earnings on Thursday.
Sony factories in northeastern Japan were among those damaged in the March 11 disaster, which also snarled the electronics industry's supply chain and triggered a plunge in domestic consumption.
Many of Sony's rivals, including Panasonic Corp , have yet to issue forecasts for the current financial year to March 2012, due to lingering uncertainty over the effects of the quake. ($1 = 81.710 Japanese Yen) (Reporting by Isabel Reynolds; Editing by Edmund Klamann)
Wall Street stock index futures point to falls
* U.S. stock index futures pointed to a lower open for Wall Street on Monday, with futures for the S&P 500 SPc1, Dow Jones DJc1 futures and Nasdaq futures NDc1 down 1 to 1.1 percent by 0920 GMT.
* Concerns lingered over possible debt restructuring in Greece and contagion for other euro zone countries after Fitch downgraded Greece's debt ratings on Friday and S&P cut the credit outlook for Italy to negative on Saturday.
* Adding to the worries, Spain's ruling Socialists, reeling from losses in local elections, now face a balancing act between voter anger over sky-high unemployment and investor demands for strict austerity measures. [ID:nLDE74L06L]
* Commodity prices were pressured by a broad rise in the dollar, as appetite for riskier assets eased across the board.
* On the economic front, the Chicago Fed national activity index for April is due at 1230 GMT.
* Campbell Soup CBP.N will release third-quarter results that are expected to show earnings per share (EPS) at $0.52 against $0.54 a year ago.
* U.S. stocks fell on Friday on euro-zone debt worries, with retailers losing ground after a weak profit outlook from Gap.
* U.S. retailer Wal-Mart Stores (WMT.N) is setting up a team in London to drive expansion into Europe, The Independent on Sunday newspaper reported. [ID:nLDE74L0FP]
* Foxconn Technology Co Ltd (2354.TW) on Sunday confirmed that a third person has died following a large explosion at a plant in southwestern China on Friday that local media have linked to production of Apple's iPad 2. [ID:nN22240885]
* In Europe, the pan-European FTSEurofirst 300 .FTEU3 index of top shares was down 1.5 percent at 1,118.66 points in early trade. (Reporting by Harpreet Bhal; Editing by Will Waterman)
* U.S. stock index futures pointed to a lower open for Wall Street on Monday, with futures for the S&P 500 SPc1, Dow Jones DJc1 futures and Nasdaq futures NDc1 down 1 to 1.1 percent by 0920 GMT.
* Concerns lingered over possible debt restructuring in Greece and contagion for other euro zone countries after Fitch downgraded Greece's debt ratings on Friday and S&P cut the credit outlook for Italy to negative on Saturday.
* Adding to the worries, Spain's ruling Socialists, reeling from losses in local elections, now face a balancing act between voter anger over sky-high unemployment and investor demands for strict austerity measures. [ID:nLDE74L06L]
* Commodity prices were pressured by a broad rise in the dollar, as appetite for riskier assets eased across the board.
* On the economic front, the Chicago Fed national activity index for April is due at 1230 GMT.
* Campbell Soup CBP.N will release third-quarter results that are expected to show earnings per share (EPS) at $0.52 against $0.54 a year ago.
* U.S. stocks fell on Friday on euro-zone debt worries, with retailers losing ground after a weak profit outlook from Gap.
* U.S. retailer Wal-Mart Stores (WMT.N) is setting up a team in London to drive expansion into Europe, The Independent on Sunday newspaper reported. [ID:nLDE74L0FP]
* Foxconn Technology Co Ltd (2354.TW) on Sunday confirmed that a third person has died following a large explosion at a plant in southwestern China on Friday that local media have linked to production of Apple's iPad 2. [ID:nN22240885]
* In Europe, the pan-European FTSEurofirst 300 .FTEU3 index of top shares was down 1.5 percent at 1,118.66 points in early trade. (Reporting by Harpreet Bhal; Editing by Will Waterman)
* U.S. stock index futures pointed to a lower open for Wall Street on Monday, with futures for the S&P 500 SPc1, Dow Jones DJc1 futures and Nasdaq futures NDc1 down 1 to 1.1 percent by 0920 GMT.
* Concerns lingered over possible debt restructuring in Greece and contagion for other euro zone countries after Fitch downgraded Greece's debt ratings on Friday and S&P cut the credit outlook for Italy to negative on Saturday.
* Adding to the worries, Spain's ruling Socialists, reeling from losses in local elections, now face a balancing act between voter anger over sky-high unemployment and investor demands for strict austerity measures. [ID:nLDE74L06L]
* Commodity prices were pressured by a broad rise in the dollar, as appetite for riskier assets eased across the board.
* On the economic front, the Chicago Fed national activity index for April is due at 1230 GMT.
* Campbell Soup CBP.N will release third-quarter results that are expected to show earnings per share (EPS) at $0.52 against $0.54 a year ago.
* U.S. stocks fell on Friday on euro-zone debt worries, with retailers losing ground after a weak profit outlook from Gap.
* U.S. retailer Wal-Mart Stores (WMT.N) is setting up a team in London to drive expansion into Europe, The Independent on Sunday newspaper reported. [ID:nLDE74L0FP]
* Foxconn Technology Co Ltd (2354.TW) on Sunday confirmed that a third person has died following a large explosion at a plant in southwestern China on Friday that local media have linked to production of Apple's iPad 2. [ID:nN22240885]
* In Europe, the pan-European FTSEurofirst 300 .FTEU3 index of top shares was down 1.5 percent at 1,118.66 points in early trade. (Reporting by Harpreet Bhal; Editing by Will Waterman)
Miners and airlines lead European shares lower
* FTSEurofirst 300 .FTEU3 falls 1.4 pct
* Miners, oils down; crude, metals fall as dollar gains
* Airlines fall on ash cloud worries, Ryanair outlook
* For up-to-the-minute market news, click on [STXNEWS/EU]
By Brian Gorman
LONDON, May 23 (Reuters) - European shares fell on Monday on renewed worries about the euro zone's peripheral debt crisis, as Greece's credit ratings were cut further into "junk" territory and Italy's rating outlook was cut to negative.
Miners were among the losers as the price of copper and other metals fell as the dollar strengthened. Anglo American (AAL.L), BHP Billiton (BLT.L) and Rio Tinto (RIO.L) fell between 2.6 and 4.2 percent.
At 0855 GMT, the FTSEurofirst 300 .FTEU3 index of top European shares was down 1.4 percent at 1,120.84 points, hitting its lowest in more than a month, and dipping below the 50-day moving average.
Standard & Poor's cut its rating outlook for Italy to negative from stable, citing weak growth prospects and increased risks it would fail to slash its debt mountain. Fitch Ratings on Friday downgraded Greece's credit rating to B-plus and put the country on rating watch negative. [ID:nLDE74K08M]
"It's more than Greece now. This is more a reflection of the inability of the EU to sort out anything, and that makes people worry beyond Greece," said Lothar Mentel, chief investment officer at Octopus Investments, which manages $4 billion.
For equities to pick up, Mentel said, "The EU would need to come forward with something clever, instead of just buying time. Or we would need to see the decline in commodity prices feed through to the real economy quite quickly, and I don't expect that to happen before the end of the summer."
The airline sector fell as an eruption by Iceland's most active volcano was set to keep the island's main airport shut on Monday, while other European nations watched for any disruption to their air routes from a towering plume of smoke and ash.
Low-cost airline Ryanair (RYA.I) fell 4.2 percent after it said high fuel costs and a lack of growth in capacity would mean flat earnings in the coming year.
Other fallers in the sector included Air France (AIRF.PA), easyJet (EZJ.L), International Airlines Group (ICAG.L) and Lufthansa (LHAG.DE), down between 2.8 and 5.3 percent. A fall in crude oil CLc1 prices, usually favourable for airlines, failed to cheer the sector.
Energy companies BP (BP.L), Royal Dutch Shell (RDSa.L) and Statoil (STL.OL) fell between 0.9 and 1 percent.
The heavyweight banking sector .SX7P was also a major drag on the index. France's Credit Agricole (CAGR.PA), one of the most exposed to Greece's debt-stricken economy, fell 2.2 percent after seeing its credit rating cut on Friday by Standard & Poor's.
Commerzbank (CBKG.DE) fell 2.1 percent after Germany's second biggest lender announced a larger-than-expected 45 percent discount on a sale of new shares.
Across Europe, Britain's FTSE 100 .FTSE, Germany's DAX .GDAXI and France's CAC40 .FCHI fell between 1.6 and 1.8 percent.
The Thomson Reuters Peripheral Eurozone Countries Index .TRXFLDPIPU was down 3.3 percent.
BLEAK MACRO PICTURE
Other macroeconomic data intensified worries for investors on Monday, adding to downbeat U.S. indicators last week.
Germany's private sector grew this month at its slowest pace since October, in a fresh sign Europe's largest economy is cooling from a surge in the first quarter. The Euro zone's service sector slowed more than expected, according to the latest Purchasing Managers' Index (PMI). China's factory expansion slowed further in May. [ID:nSLAKGE7U5] [ID:nB9E7GJ006]
"The market is beginning to extrapolate some of the PMIs and construe it as a failure in the cycle," said Philip Isherwood, European equities strategist at Evolution Securities. "Investors will look at (U.S.) non-farm payrolls, for evidence that the economy is still expanding."
The pan-European index is roughly in the middle of a range defined by its 2011 high in mid-February and its mid-March low. Octopus Investments' Mentel said European shares would move higher by year-end, but "on a relative basis, I prefer U.S. equities". (Editing by Will Waterman)
* FTSEurofirst 300 .FTEU3 falls 1.4 pct
* Miners, oils down; crude, metals fall as dollar gains
* Airlines fall on ash cloud worries, Ryanair outlook
* For up-to-the-minute market news, click on [STXNEWS/EU]
By Brian Gorman
LONDON, May 23 (Reuters) - European shares fell on Monday on renewed worries about the euro zone's peripheral debt crisis, as Greece's credit ratings were cut further into "junk" territory and Italy's rating outlook was cut to negative.
Miners were among the losers as the price of copper and other metals fell as the dollar strengthened. Anglo American (AAL.L), BHP Billiton (BLT.L) and Rio Tinto (RIO.L) fell between 2.6 and 4.2 percent.
At 0855 GMT, the FTSEurofirst 300 .FTEU3 index of top European shares was down 1.4 percent at 1,120.84 points, hitting its lowest in more than a month, and dipping below the 50-day moving average.
Standard & Poor's cut its rating outlook for Italy to negative from stable, citing weak growth prospects and increased risks it would fail to slash its debt mountain. Fitch Ratings on Friday downgraded Greece's credit rating to B-plus and put the country on rating watch negative. [ID:nLDE74K08M]
"It's more than Greece now. This is more a reflection of the inability of the EU to sort out anything, and that makes people worry beyond Greece," said Lothar Mentel, chief investment officer at Octopus Investments, which manages $4 billion.
For equities to pick up, Mentel said, "The EU would need to come forward with something clever, instead of just buying time. Or we would need to see the decline in commodity prices feed through to the real economy quite quickly, and I don't expect that to happen before the end of the summer."
The airline sector fell as an eruption by Iceland's most active volcano was set to keep the island's main airport shut on Monday, while other European nations watched for any disruption to their air routes from a towering plume of smoke and ash.
Low-cost airline Ryanair (RYA.I) fell 4.2 percent after it said high fuel costs and a lack of growth in capacity would mean flat earnings in the coming year.
Other fallers in the sector included Air France (AIRF.PA), easyJet (EZJ.L), International Airlines Group (ICAG.L) and Lufthansa (LHAG.DE), down between 2.8 and 5.3 percent. A fall in crude oil CLc1 prices, usually favourable for airlines, failed to cheer the sector.
Energy companies BP (BP.L), Royal Dutch Shell (RDSa.L) and Statoil (STL.OL) fell between 0.9 and 1 percent.
The heavyweight banking sector .SX7P was also a major drag on the index. France's Credit Agricole (CAGR.PA), one of the most exposed to Greece's debt-stricken economy, fell 2.2 percent after seeing its credit rating cut on Friday by Standard & Poor's.
Commerzbank (CBKG.DE) fell 2.1 percent after Germany's second biggest lender announced a larger-than-expected 45 percent discount on a sale of new shares.
Across Europe, Britain's FTSE 100 .FTSE, Germany's DAX .GDAXI and France's CAC40 .FCHI fell between 1.6 and 1.8 percent.
The Thomson Reuters Peripheral Eurozone Countries Index .TRXFLDPIPU was down 3.3 percent.
BLEAK MACRO PICTURE
Other macroeconomic data intensified worries for investors on Monday, adding to downbeat U.S. indicators last week.
Germany's private sector grew this month at its slowest pace since October, in a fresh sign Europe's largest economy is cooling from a surge in the first quarter. The Euro zone's service sector slowed more than expected, according to the latest Purchasing Managers' Index (PMI). China's factory expansion slowed further in May. [ID:nSLAKGE7U5] [ID:nB9E7GJ006]
"The market is beginning to extrapolate some of the PMIs and construe it as a failure in the cycle," said Philip Isherwood, European equities strategist at Evolution Securities. "Investors will look at (U.S.) non-farm payrolls, for evidence that the economy is still expanding."
The pan-European index is roughly in the middle of a range defined by its 2011 high in mid-February and its mid-March low. Octopus Investments' Mentel said European shares would move higher by year-end, but "on a relative basis, I prefer U.S. equities". (Editing by Will Waterman)
* FTSEurofirst 300 .FTEU3 falls 1.4 pct
* Miners, oils down; crude, metals fall as dollar gains
* Airlines fall on ash cloud worries, Ryanair outlook
* For up-to-the-minute market news, click on [STXNEWS/EU]
By Brian Gorman
LONDON, May 23 (Reuters) - European shares fell on Monday on renewed worries about the euro zone's peripheral debt crisis, as Greece's credit ratings were cut further into "junk" territory and Italy's rating outlook was cut to negative.
Miners were among the losers as the price of copper and other metals fell as the dollar strengthened. Anglo American (AAL.L), BHP Billiton (BLT.L) and Rio Tinto (RIO.L) fell between 2.6 and 4.2 percent.
At 0855 GMT, the FTSEurofirst 300 .FTEU3 index of top European shares was down 1.4 percent at 1,120.84 points, hitting its lowest in more than a month, and dipping below the 50-day moving average.
Standard & Poor's cut its rating outlook for Italy to negative from stable, citing weak growth prospects and increased risks it would fail to slash its debt mountain. Fitch Ratings on Friday downgraded Greece's credit rating to B-plus and put the country on rating watch negative. [ID:nLDE74K08M]
"It's more than Greece now. This is more a reflection of the inability of the EU to sort out anything, and that makes people worry beyond Greece," said Lothar Mentel, chief investment officer at Octopus Investments, which manages $4 billion.
For equities to pick up, Mentel said, "The EU would need to come forward with something clever, instead of just buying time. Or we would need to see the decline in commodity prices feed through to the real economy quite quickly, and I don't expect that to happen before the end of the summer."
The airline sector fell as an eruption by Iceland's most active volcano was set to keep the island's main airport shut on Monday, while other European nations watched for any disruption to their air routes from a towering plume of smoke and ash.
Low-cost airline Ryanair (RYA.I) fell 4.2 percent after it said high fuel costs and a lack of growth in capacity would mean flat earnings in the coming year.
Other fallers in the sector included Air France (AIRF.PA), easyJet (EZJ.L), International Airlines Group (ICAG.L) and Lufthansa (LHAG.DE), down between 2.8 and 5.3 percent. A fall in crude oil CLc1 prices, usually favourable for airlines, failed to cheer the sector.
Energy companies BP (BP.L), Royal Dutch Shell (RDSa.L) and Statoil (STL.OL) fell between 0.9 and 1 percent.
The heavyweight banking sector .SX7P was also a major drag on the index. France's Credit Agricole (CAGR.PA), one of the most exposed to Greece's debt-stricken economy, fell 2.2 percent after seeing its credit rating cut on Friday by Standard & Poor's.
Commerzbank (CBKG.DE) fell 2.1 percent after Germany's second biggest lender announced a larger-than-expected 45 percent discount on a sale of new shares.
Across Europe, Britain's FTSE 100 .FTSE, Germany's DAX .GDAXI and France's CAC40 .FCHI fell between 1.6 and 1.8 percent.
The Thomson Reuters Peripheral Eurozone Countries Index .TRXFLDPIPU was down 3.3 percent.
BLEAK MACRO PICTURE
Other macroeconomic data intensified worries for investors on Monday, adding to downbeat U.S. indicators last week.
Germany's private sector grew this month at its slowest pace since October, in a fresh sign Europe's largest economy is cooling from a surge in the first quarter. The Euro zone's service sector slowed more than expected, according to the latest Purchasing Managers' Index (PMI). China's factory expansion slowed further in May. [ID:nSLAKGE7U5] [ID:nB9E7GJ006]
"The market is beginning to extrapolate some of the PMIs and construe it as a failure in the cycle," said Philip Isherwood, European equities strategist at Evolution Securities. "Investors will look at (U.S.) non-farm payrolls, for evidence that the economy is still expanding."
The pan-European index is roughly in the middle of a range defined by its 2011 high in mid-February and its mid-March low. Octopus Investments' Mentel said European shares would move higher by year-end, but "on a relative basis, I prefer U.S. equities". (Editing by Will Waterman)
Sony sees 2011/12 op profit unchanged from prior year
TOKYO | Mon May 23, 2011 4:49am EDT
The Japanese consumer electronics company also said it sees sales rising in 2011/12 and expects to post a net profit, despite the impact of the earthquake in March.
For the year just ended, Sony cut its earnings estimate to a net loss of 260 billion yen from a profit of 70 billion. [ID:L3E7GN0RW] ($1 = 81.710 Japanese Yen) (Reporting by Isabel Reynolds; Writing by Chris Gallagher; Editing by Edmund Klamann)
TOKYO | Mon May 23, 2011 4:49am EDT
The Japanese consumer electronics company also said it sees sales rising in 2011/12 and expects to post a net profit, despite the impact of the earthquake in March.
For the year just ended, Sony cut its earnings estimate to a net loss of 260 billion yen from a profit of 70 billion. [ID:L3E7GN0RW] ($1 = 81.710 Japanese Yen) (Reporting by Isabel Reynolds; Writing by Chris Gallagher; Editing by Edmund Klamann)
TOKYO | Mon May 23, 2011 4:49am EDT
The Japanese consumer electronics company also said it sees sales rising in 2011/12 and expects to post a net profit, despite the impact of the earthquake in March.
For the year just ended, Sony cut its earnings estimate to a net loss of 260 billion yen from a profit of 70 billion. [ID:L3E7GN0RW] ($1 = 81.710 Japanese Yen) (Reporting by Isabel Reynolds; Writing by Chris Gallagher; Editing by Edmund Klamann)
FTSE hits 2-month low on euro zone debt problems
* FTSE falls 1.6 percent
* Euro zone debt worries weigh
* Travel stocks fall after Icelandic volcano eruption
LONDON, May 23 (Reuters) - Britain's top share index fell on Monday to its lowest level in two months on persistent euro zone peripheral debt concerns, while an Icelandic volcano eruption put pressure on travel and oil stocks.
London's blue chip index .FTSE was down 93.45 points, or 1.6 percent at 5,855.06 by 0839 GMT - its lowest level since March 24. It dropped below its 50-day moving average - a move considered negative for equities that could point to more selling pressure.
Investors are again focused on the euro zone peripheral debt crisis, following Fitch Ratings' downgrade of Greece's credit rating on Friday. [ID:nLDE74M07C]
Adding to these worries was news out on Saturday that Standard & Poor's cut its outlook for Italy to "negative" from "stable." S&P's main concern was that any possible restructuring of Greek debt could have contagion effects for other euro zone peripheral countries.
"We are slightly cautious on the market over the next three to six months over a lack of clarity over the bigger macro issues such as the European sovereign debt," said Neil Tong, head of UK equities at Alliance Trust, which has 2.5 billion pounds of assets under management.
"We have cut down our exposure to miners and it is not surprising they are coming under pressure, but if the situation improved then we would be looking to opportunities to re-invest."
Mining stocks continued their falls from the previous session as risk appetite deteriorated and base metal prices slipped, with copper MCU3=LX down 2.4 percent after the dollar strengthened on the euro zone peripheral debt issues.
Anglo American (AAL.L), Antofagasta (ANTO.L) and Xstrata (XTA.L) were down 3.1 to 4.5 percent.
Oil stocks were also hit, along with U.S crude futures for July CLc1 on the renewed euro zone peripheral debt worries, plus expectations of lower oil demand from Europe as a volcanic eruption threatened air travel disruption.
BP (BP.L), BG Group (BG.L) and Royal Dutch Shell (RDSa.L) were 1.3 to 1.9 percent lower.
TRAVEL STOCKS WEIGH
The Icelandic volcano eruption at the weekend put travel stocks under pressure due to worries about possible disruption, with forecasters saying ash could reach Scotland on Tuesday and touch parts of France and Spain by Thursday or Friday. [ID:nLDE74M07D]
International Airlines Group (ICAG.L) (ICAG.MC), formed by the merger of BA and Iberia, fell 3.5 percent, while Europe's biggest tour operator TUI Travel (TT.L) slipped 3.9 percent.
IAG was also hit by negative read across from Ryanair (RYA.I) after it said high fuel costs and a lack of growth in capacity would mean flat earnings in the coming year. [ID:nLDE74M04U]
Ryanair dropped 4.7 percent.
Traders said that the technical picture looked bearish for FTSE 100.
"Things look weak technically and fundamentally as investors focus on the Greek issue, so all eyes on a break and close below the 5850 level which could lead to further selling pressure," said Simon Denham, head of Capital Spreads.
"Since the recent failure to take out the 2011 highs around 6100 the market has made two attempts at getting back up there but the lack of momentum has formed two lower highs, another classic bearish signal."
On the upside, a standout riser was ICAP (IAP.L), boosted by broker Credit Suisse after it double-upgraded its rating for the inter-dealer broker to "outperform" from "underperform". (Reporting by Joanne Frearson; Editing by Jane Merriman)
* FTSE falls 1.6 percent
* Euro zone debt worries weigh
* Travel stocks fall after Icelandic volcano eruption
LONDON, May 23 (Reuters) - Britain's top share index fell on Monday to its lowest level in two months on persistent euro zone peripheral debt concerns, while an Icelandic volcano eruption put pressure on travel and oil stocks.
London's blue chip index .FTSE was down 93.45 points, or 1.6 percent at 5,855.06 by 0839 GMT - its lowest level since March 24. It dropped below its 50-day moving average - a move considered negative for equities that could point to more selling pressure.
Investors are again focused on the euro zone peripheral debt crisis, following Fitch Ratings' downgrade of Greece's credit rating on Friday. [ID:nLDE74M07C]
Adding to these worries was news out on Saturday that Standard & Poor's cut its outlook for Italy to "negative" from "stable." S&P's main concern was that any possible restructuring of Greek debt could have contagion effects for other euro zone peripheral countries.
"We are slightly cautious on the market over the next three to six months over a lack of clarity over the bigger macro issues such as the European sovereign debt," said Neil Tong, head of UK equities at Alliance Trust, which has 2.5 billion pounds of assets under management.
"We have cut down our exposure to miners and it is not surprising they are coming under pressure, but if the situation improved then we would be looking to opportunities to re-invest."
Mining stocks continued their falls from the previous session as risk appetite deteriorated and base metal prices slipped, with copper MCU3=LX down 2.4 percent after the dollar strengthened on the euro zone peripheral debt issues.
Anglo American (AAL.L), Antofagasta (ANTO.L) and Xstrata (XTA.L) were down 3.1 to 4.5 percent.
Oil stocks were also hit, along with U.S crude futures for July CLc1 on the renewed euro zone peripheral debt worries, plus expectations of lower oil demand from Europe as a volcanic eruption threatened air travel disruption.
BP (BP.L), BG Group (BG.L) and Royal Dutch Shell (RDSa.L) were 1.3 to 1.9 percent lower.
TRAVEL STOCKS WEIGH
The Icelandic volcano eruption at the weekend put travel stocks under pressure due to worries about possible disruption, with forecasters saying ash could reach Scotland on Tuesday and touch parts of France and Spain by Thursday or Friday. [ID:nLDE74M07D]
International Airlines Group (ICAG.L) (ICAG.MC), formed by the merger of BA and Iberia, fell 3.5 percent, while Europe's biggest tour operator TUI Travel (TT.L) slipped 3.9 percent.
IAG was also hit by negative read across from Ryanair (RYA.I) after it said high fuel costs and a lack of growth in capacity would mean flat earnings in the coming year. [ID:nLDE74M04U]
Ryanair dropped 4.7 percent.
Traders said that the technical picture looked bearish for FTSE 100.
"Things look weak technically and fundamentally as investors focus on the Greek issue, so all eyes on a break and close below the 5850 level which could lead to further selling pressure," said Simon Denham, head of Capital Spreads.
"Since the recent failure to take out the 2011 highs around 6100 the market has made two attempts at getting back up there but the lack of momentum has formed two lower highs, another classic bearish signal."
On the upside, a standout riser was ICAP (IAP.L), boosted by broker Credit Suisse after it double-upgraded its rating for the inter-dealer broker to "outperform" from "underperform". (Reporting by Joanne Frearson; Editing by Jane Merriman)
* FTSE falls 1.6 percent
* Euro zone debt worries weigh
* Travel stocks fall after Icelandic volcano eruption
LONDON, May 23 (Reuters) - Britain's top share index fell on Monday to its lowest level in two months on persistent euro zone peripheral debt concerns, while an Icelandic volcano eruption put pressure on travel and oil stocks.
London's blue chip index .FTSE was down 93.45 points, or 1.6 percent at 5,855.06 by 0839 GMT - its lowest level since March 24. It dropped below its 50-day moving average - a move considered negative for equities that could point to more selling pressure.
Investors are again focused on the euro zone peripheral debt crisis, following Fitch Ratings' downgrade of Greece's credit rating on Friday. [ID:nLDE74M07C]
Adding to these worries was news out on Saturday that Standard & Poor's cut its outlook for Italy to "negative" from "stable." S&P's main concern was that any possible restructuring of Greek debt could have contagion effects for other euro zone peripheral countries.
"We are slightly cautious on the market over the next three to six months over a lack of clarity over the bigger macro issues such as the European sovereign debt," said Neil Tong, head of UK equities at Alliance Trust, which has 2.5 billion pounds of assets under management.
"We have cut down our exposure to miners and it is not surprising they are coming under pressure, but if the situation improved then we would be looking to opportunities to re-invest."
Mining stocks continued their falls from the previous session as risk appetite deteriorated and base metal prices slipped, with copper MCU3=LX down 2.4 percent after the dollar strengthened on the euro zone peripheral debt issues.
Anglo American (AAL.L), Antofagasta (ANTO.L) and Xstrata (XTA.L) were down 3.1 to 4.5 percent.
Oil stocks were also hit, along with U.S crude futures for July CLc1 on the renewed euro zone peripheral debt worries, plus expectations of lower oil demand from Europe as a volcanic eruption threatened air travel disruption.
BP (BP.L), BG Group (BG.L) and Royal Dutch Shell (RDSa.L) were 1.3 to 1.9 percent lower.
TRAVEL STOCKS WEIGH
The Icelandic volcano eruption at the weekend put travel stocks under pressure due to worries about possible disruption, with forecasters saying ash could reach Scotland on Tuesday and touch parts of France and Spain by Thursday or Friday. [ID:nLDE74M07D]
International Airlines Group (ICAG.L) (ICAG.MC), formed by the merger of BA and Iberia, fell 3.5 percent, while Europe's biggest tour operator TUI Travel (TT.L) slipped 3.9 percent.
IAG was also hit by negative read across from Ryanair (RYA.I) after it said high fuel costs and a lack of growth in capacity would mean flat earnings in the coming year. [ID:nLDE74M04U]
Ryanair dropped 4.7 percent.
Traders said that the technical picture looked bearish for FTSE 100.
"Things look weak technically and fundamentally as investors focus on the Greek issue, so all eyes on a break and close below the 5850 level which could lead to further selling pressure," said Simon Denham, head of Capital Spreads.
"Since the recent failure to take out the 2011 highs around 6100 the market has made two attempts at getting back up there but the lack of momentum has formed two lower highs, another classic bearish signal."
On the upside, a standout riser was ICAP (IAP.L), boosted by broker Credit Suisse after it double-upgraded its rating for the inter-dealer broker to "outperform" from "underperform". (Reporting by Joanne Frearson; Editing by Jane Merriman)
Miners and airlines lead European shares lower
* FTSEurofirst 300 .FTEU3 falls 1.4 pct
* Miners, oils down; crude, metals fall as dollar gains
* Airlines fall on ash cloud worries, Ryanair outlook
* For up-to-the-minute market news, click on [STXNEWS/EU]
By Brian Gorman
LONDON, May 23 (Reuters) - European shares fell on Monday on renewed worries about the euro zone's peripheral debt crisis, as Greece's credit ratings were cut further into "junk" territory and Italy's rating outlook was cut to negative.
Miners were among the losers as the price of copper and other metals fell as the dollar strengthened. Anglo American (AAL.L), BHP Billiton (BLT.L) and Rio Tinto (RIO.L) fell between 2.6 and 4.2 percent.
At 0855 GMT, the FTSEurofirst 300 .FTEU3 index of top European shares was down 1.4 percent at 1,120.84 points, hitting its lowest in more than a month, and dipping below the 50-day moving average.
Standard & Poor's cut its rating outlook for Italy to negative from stable, citing weak growth prospects and increased risks it would fail to slash its debt mountain. Fitch Ratings on Friday downgraded Greece's credit rating to B-plus and put the country on rating watch negative. [ID:nLDE74K08M]
"It's more than Greece now. This is more a reflection of the inability of the EU to sort out anything, and that makes people worry beyond Greece," said Lothar Mentel, chief investment officer at Octopus Investments, which manages $4 billion.
For equities to pick up, Mentel said, "The EU would need to come forward with something clever, instead of just buying time. Or we would need to see the decline in commodity prices feed through to the real economy quite quickly, and I don't expect that to happen before the end of the summer."
The airline sector fell as an eruption by Iceland's most active volcano was set to keep the island's main airport shut on Monday, while other European nations watched for any disruption to their air routes from a towering plume of smoke and ash.
Low-cost airline Ryanair (RYA.I) fell 4.2 percent after it said high fuel costs and a lack of growth in capacity would mean flat earnings in the coming year.
Other fallers in the sector included Air France (AIRF.PA), easyJet (EZJ.L), International Airlines Group (ICAG.L) and Lufthansa (LHAG.DE), down between 2.8 and 5.3 percent. A fall in crude oil CLc1 prices, usually favourable for airlines, failed to cheer the sector.
Energy companies BP (BP.L), Royal Dutch Shell (RDSa.L) and Statoil (STL.OL) fell between 0.9 and 1 percent.
The heavyweight banking sector .SX7P was also a major drag on the index. France's Credit Agricole (CAGR.PA), one of the most exposed to Greece's debt-stricken economy, fell 2.2 percent after seeing its credit rating cut on Friday by Standard & Poor's.
Commerzbank (CBKG.DE) fell 2.1 percent after Germany's second biggest lender announced a larger-than-expected 45 percent discount on a sale of new shares.
Across Europe, Britain's FTSE 100 .FTSE, Germany's DAX .GDAXI and France's CAC40 .FCHI fell between 1.6 and 1.8 percent.
The Thomson Reuters Peripheral Eurozone Countries Index .TRXFLDPIPU was down 3.3 percent.
BLEAK MACRO PICTURE
Other macroeconomic data intensified worries for investors on Monday, adding to downbeat U.S. indicators last week.
Germany's private sector grew this month at its slowest pace since October, in a fresh sign Europe's largest economy is cooling from a surge in the first quarter. The Euro zone's service sector slowed more than expected, according to the latest Purchasing Managers' Index (PMI). China's factory expansion slowed further in May. [ID:nSLAKGE7U5] [ID:nB9E7GJ006]
"The market is beginning to extrapolate some of the PMIs and construe it as a failure in the cycle," said Philip Isherwood, European equities strategist at Evolution Securities. "Investors will look at (U.S.) non-farm payrolls, for evidence that the economy is still expanding."
The pan-European index is roughly in the middle of a range defined by its 2011 high in mid-February and its mid-March low. Octopus Investments' Mentel said European shares would move higher by year-end, but "on a relative basis, I prefer U.S. equities". (Editing by Will Waterman)
* FTSEurofirst 300 .FTEU3 falls 1.4 pct
* Miners, oils down; crude, metals fall as dollar gains
* Airlines fall on ash cloud worries, Ryanair outlook
* For up-to-the-minute market news, click on [STXNEWS/EU]
By Brian Gorman
LONDON, May 23 (Reuters) - European shares fell on Monday on renewed worries about the euro zone's peripheral debt crisis, as Greece's credit ratings were cut further into "junk" territory and Italy's rating outlook was cut to negative.
Miners were among the losers as the price of copper and other metals fell as the dollar strengthened. Anglo American (AAL.L), BHP Billiton (BLT.L) and Rio Tinto (RIO.L) fell between 2.6 and 4.2 percent.
At 0855 GMT, the FTSEurofirst 300 .FTEU3 index of top European shares was down 1.4 percent at 1,120.84 points, hitting its lowest in more than a month, and dipping below the 50-day moving average.
Standard & Poor's cut its rating outlook for Italy to negative from stable, citing weak growth prospects and increased risks it would fail to slash its debt mountain. Fitch Ratings on Friday downgraded Greece's credit rating to B-plus and put the country on rating watch negative. [ID:nLDE74K08M]
"It's more than Greece now. This is more a reflection of the inability of the EU to sort out anything, and that makes people worry beyond Greece," said Lothar Mentel, chief investment officer at Octopus Investments, which manages $4 billion.
For equities to pick up, Mentel said, "The EU would need to come forward with something clever, instead of just buying time. Or we would need to see the decline in commodity prices feed through to the real economy quite quickly, and I don't expect that to happen before the end of the summer."
The airline sector fell as an eruption by Iceland's most active volcano was set to keep the island's main airport shut on Monday, while other European nations watched for any disruption to their air routes from a towering plume of smoke and ash.
Low-cost airline Ryanair (RYA.I) fell 4.2 percent after it said high fuel costs and a lack of growth in capacity would mean flat earnings in the coming year.
Other fallers in the sector included Air France (AIRF.PA), easyJet (EZJ.L), International Airlines Group (ICAG.L) and Lufthansa (LHAG.DE), down between 2.8 and 5.3 percent. A fall in crude oil CLc1 prices, usually favourable for airlines, failed to cheer the sector.
Energy companies BP (BP.L), Royal Dutch Shell (RDSa.L) and Statoil (STL.OL) fell between 0.9 and 1 percent.
The heavyweight banking sector .SX7P was also a major drag on the index. France's Credit Agricole (CAGR.PA), one of the most exposed to Greece's debt-stricken economy, fell 2.2 percent after seeing its credit rating cut on Friday by Standard & Poor's.
Commerzbank (CBKG.DE) fell 2.1 percent after Germany's second biggest lender announced a larger-than-expected 45 percent discount on a sale of new shares.
Across Europe, Britain's FTSE 100 .FTSE, Germany's DAX .GDAXI and France's CAC40 .FCHI fell between 1.6 and 1.8 percent.
The Thomson Reuters Peripheral Eurozone Countries Index .TRXFLDPIPU was down 3.3 percent.
BLEAK MACRO PICTURE
Other macroeconomic data intensified worries for investors on Monday, adding to downbeat U.S. indicators last week.
Germany's private sector grew this month at its slowest pace since October, in a fresh sign Europe's largest economy is cooling from a surge in the first quarter. The Euro zone's service sector slowed more than expected, according to the latest Purchasing Managers' Index (PMI). China's factory expansion slowed further in May. [ID:nSLAKGE7U5] [ID:nB9E7GJ006]
"The market is beginning to extrapolate some of the PMIs and construe it as a failure in the cycle," said Philip Isherwood, European equities strategist at Evolution Securities. "Investors will look at (U.S.) non-farm payrolls, for evidence that the economy is still expanding."
The pan-European index is roughly in the middle of a range defined by its 2011 high in mid-February and its mid-March low. Octopus Investments' Mentel said European shares would move higher by year-end, but "on a relative basis, I prefer U.S. equities". (Editing by Will Waterman)
* FTSEurofirst 300 .FTEU3 falls 1.4 pct
* Miners, oils down; crude, metals fall as dollar gains
* Airlines fall on ash cloud worries, Ryanair outlook
* For up-to-the-minute market news, click on [STXNEWS/EU]
By Brian Gorman
LONDON, May 23 (Reuters) - European shares fell on Monday on renewed worries about the euro zone's peripheral debt crisis, as Greece's credit ratings were cut further into "junk" territory and Italy's rating outlook was cut to negative.
Miners were among the losers as the price of copper and other metals fell as the dollar strengthened. Anglo American (AAL.L), BHP Billiton (BLT.L) and Rio Tinto (RIO.L) fell between 2.6 and 4.2 percent.
At 0855 GMT, the FTSEurofirst 300 .FTEU3 index of top European shares was down 1.4 percent at 1,120.84 points, hitting its lowest in more than a month, and dipping below the 50-day moving average.
Standard & Poor's cut its rating outlook for Italy to negative from stable, citing weak growth prospects and increased risks it would fail to slash its debt mountain. Fitch Ratings on Friday downgraded Greece's credit rating to B-plus and put the country on rating watch negative. [ID:nLDE74K08M]
"It's more than Greece now. This is more a reflection of the inability of the EU to sort out anything, and that makes people worry beyond Greece," said Lothar Mentel, chief investment officer at Octopus Investments, which manages $4 billion.
For equities to pick up, Mentel said, "The EU would need to come forward with something clever, instead of just buying time. Or we would need to see the decline in commodity prices feed through to the real economy quite quickly, and I don't expect that to happen before the end of the summer."
The airline sector fell as an eruption by Iceland's most active volcano was set to keep the island's main airport shut on Monday, while other European nations watched for any disruption to their air routes from a towering plume of smoke and ash.
Low-cost airline Ryanair (RYA.I) fell 4.2 percent after it said high fuel costs and a lack of growth in capacity would mean flat earnings in the coming year.
Other fallers in the sector included Air France (AIRF.PA), easyJet (EZJ.L), International Airlines Group (ICAG.L) and Lufthansa (LHAG.DE), down between 2.8 and 5.3 percent. A fall in crude oil CLc1 prices, usually favourable for airlines, failed to cheer the sector.
Energy companies BP (BP.L), Royal Dutch Shell (RDSa.L) and Statoil (STL.OL) fell between 0.9 and 1 percent.
The heavyweight banking sector .SX7P was also a major drag on the index. France's Credit Agricole (CAGR.PA), one of the most exposed to Greece's debt-stricken economy, fell 2.2 percent after seeing its credit rating cut on Friday by Standard & Poor's.
Commerzbank (CBKG.DE) fell 2.1 percent after Germany's second biggest lender announced a larger-than-expected 45 percent discount on a sale of new shares.
Across Europe, Britain's FTSE 100 .FTSE, Germany's DAX .GDAXI and France's CAC40 .FCHI fell between 1.6 and 1.8 percent.
The Thomson Reuters Peripheral Eurozone Countries Index .TRXFLDPIPU was down 3.3 percent.
BLEAK MACRO PICTURE
Other macroeconomic data intensified worries for investors on Monday, adding to downbeat U.S. indicators last week.
Germany's private sector grew this month at its slowest pace since October, in a fresh sign Europe's largest economy is cooling from a surge in the first quarter. The Euro zone's service sector slowed more than expected, according to the latest Purchasing Managers' Index (PMI). China's factory expansion slowed further in May. [ID:nSLAKGE7U5] [ID:nB9E7GJ006]
"The market is beginning to extrapolate some of the PMIs and construe it as a failure in the cycle," said Philip Isherwood, European equities strategist at Evolution Securities. "Investors will look at (U.S.) non-farm payrolls, for evidence that the economy is still expanding."
The pan-European index is roughly in the middle of a range defined by its 2011 high in mid-February and its mid-March low. Octopus Investments' Mentel said European shares would move higher by year-end, but "on a relative basis, I prefer U.S. equities". (Editing by Will Waterman)
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