Top Financial News
12/21 03:19
European Stocks Fall, Led by Zurich Financial, HSBC, Alcatel
By John Fraher
quote.bloomberg.com
London, Dec. 21 (Bloomberg) -- European stocks fell on concern an economic recovery won't be strong enough to justify share price gains over the past three months. Alcatel SA and HSBC Holdings Plc, up by a third since Sept. 21, slipped.
Zurich Financial Services AG dropped after Europe's No. 3 insurer said it will have a net loss of $200 million to $400 million this year.
``Markets are perhaps a little overly optimistic and may well be setting themselves up for further disappointment in 2002,'' said Mike Collins, chief strategist at Pictet Asset Management. He's concerned economic growth in 2002 will be less than some investors forecast.
The Dow Jones Stoxx 50 Index fell 29.25 points, or 0.8 percent, to 3508.09. The index has surged 20 percent in the past three months as investors speculated a swathe of interest rate cuts in Europe and the U.S. will revive economies next year.
That rally has stalled since Dec. 6 as companies from Cap Gemini SA to Logica Plc lowered earnings forecasts, sapping optimism about the extent of a rebound.
Alcatel, Europe's No. 4 phone-equipment company, lost 45 cents, or 2.5 percent, to 17.55 euros. HSBC, Europe's largest bank by market value, fell 19p, or 2.4 percent, 786. |
