Monday, August 23, 2010

EUROPA: European Stocks Erase Earlier Losses as U.K. Retail Sales Beat Forecast


European stocks declined, led by construction companies, as Holcim Ltd., the world’s second- biggest cement maker, reported earnings that missed estimates.
The benchmark Stoxx Europe 600 Index fell 0.2 percent to 257.05 as of 9:05 a.m. in London, erasing an earlier advance. The gauge has retreated 5.5 percent from this year’s high in April amid concern that European governments will struggle to reduce their budget deficits and speculation that the U.S. economic recovery may be flagging.
Holcim declined 4.2 percent to 64.85 Swiss francs. Second- quarter net income fell 12 percent to 399 million francs ($382.5 million) as demand for cement declined in Europe and the company had higher production costs and selling expenses. The average estimate of five analysts surveyed by Bloomberg was for profit of 561 million francs.
Futures contracts on the Standard & Poor’s 500 Index expiring in September slipped less than 0.1 percent and the MSCI Asia Pacific Index climbed 0.6 percent.

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