Portfolio

European open: Shares fall for third day

Date: Thursday 24 Jun 2010

European open: Shares fall for third day

Europe's main markets are lower for a third day in a row, with banking shares adding to yesterday’s losses.

BNP Paribas, Societe Generale, Commerzbank and Deutsche Bank are among this morning’s main fallers.

AXA is the only riser in Paris on news that London-listed insurance firm consolidator Resolution has confirmed its acquisition of AXA’s life insurance businesses, to be funded by a £2bn rights issue.

It will pay £2.750bn for the businesses. Shares in Resolution were suspended last week as it confirmed the takeover discussions for AXA's UK protection and annuities arms and also its group pensions business.

Resolution said that shareholders have already sub-underwritten more than 52% of the rights issue.

Across the markets, the Dax in Frankfurt is 13 points lower at 6,192, with the Cac in Paris falling 31 points to 3,611. The Swiss market dropped 21 points to 6,361.

Swedish retailer Hennes & Mauritz saw first-half net profit rise to 8.95bn Swedish kronor compared with 6.77bn kronor last year on sales up 4%.

Oil company BP said the lower marine riser package (LMRP) cap containment system was successfully re-attached on its blow-out well in the Gulf of Mexico. Yesterday, oil spewed uncontrolled back into the Gulf of Mexico after the cap containing the spill was removed because fluid seemed to be leaking.

Elsewhere, the US Federal Reserve again held its Fed Funds rate at near zero last night.

The central bank said that the "economic recovery is proceeding," but economists said the tone was more cautious than the last meeting. The Fed added "financial conditions have become less supportive of economic growth on balance, largely reflecting developments abroad."

CAC 40 - Risers
AXA (CS) € 13.60 +0.33%

CAC 40 - Fallers
Alstom (ALO) € 39.28 -4.44%
BNP Paribas (BNP) € 46.98 -2.70%
Societe Generale (GLE) € 36.26 -1.52%
Suez Environnement Company (SEV) € 14.05 -1.51%
Dexia (DEXB) € 3.17 -1.49%
Credit Agricole (ACA) € 9.13 -1.28%
Renault (RNO) € 33.19 -1.16%
Lagardere SCA (MMB) € 26.83 -1.11%
EADS (EAD) € 17.77 -1.00%
ST Microelectronics (STM) € 6.84 -1.00%

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