European Stocks May Fall, Led by Sonera and STMicroelectronics
By Sam Fleming
quote.bloomberg.com
London, Feb. 20 (Bloomberg) -- European stocks may drop on concern profits in the U.S., the biggest economy, will recover more slowly than some investors anticipated as accounting policies are tightened. Sonera Oyj, Royal KPN NV and STMicroelectronics NV might slide after their U.S.-traded stock declined.
France Telecom SA could fall after analysts said it may have to write down the value of some units. Telewest Communications Plc may decline after the Daily Telegraph reported that the U.K. company will lose money this year because of an asset writedown.
The U.K. benchmark FT-SE 100 Index may open 36 points lower, and Germany's DAX Index may drop 17 points at the start of trading, according to Cantor Index, a spread-betting firm.
In the U.S., ``the earnings outlook isn't as attractive as it was,'' said Margaret McLaren, head of European equities at Britannic Asset Management, which oversees 18 billion pounds. ``We recognized the U.S. had problems, but we didn't think it would drag Europe down as much as it has.''
U.S. stocks fell yesterday as International Business Machines Corp. declined 3.3 percent. The computer maker said it will provide more detailed financial reporting, responding to criticism it didn't adequately disclose a $300 million asset sale. |
