By Sara Sjolin, MarketWatch
LONDON (MarketWatch) -- European stock markets dropped on
Monday, with shares of Carlsberg AS among the biggest decliners
after a disappointing earnings report and as an Asia rally failed
to lift the mood on the Continent.
The Stoxx Europe 600 index lost 0.3% to 286.52, on track for a
third day of losses.
U.S. markets were closed for the Presidents Day holiday.
Shares of Carlsberg AS slumped 7.1% after the Danish brewer said
market dynamics in 2013 are expected to be similar to those of
2012, while posting a fourth-quarter result below expectations.
Shares of Telefonica SA eased 1.2%. The telecom firm said late
Friday that it will take a 438 million euro ($586 million) hit on
its 2012 earnings to reflect the impact of Venezuela's recent
currency devaluation.
On an upbeat note, shares of Natixis jumped 27% as the French
bank said it plans to sell holdings valued at EUR12.1 to simplify
its structure. That will create an exceptional distribution to the
shareholders of EUR2 billion. Additionally, Citigroup lifted the
bank to buy from neutral.
The broader European stock markets failed to take inspiration
from an upbeat mood in Asia.
Japanese shares soared as the Group of 20 nations didn't single
out Japan for weakening its currency. Instead the group said it
would refrain from competitive devaluation and pledged to monitor
negative currency spillovers to other countries amid talks of
currency wars between major world economies. and
"It is quite clear now that there will be no international
criticism of Japan as long as its exchange rate isn't the target of
its economic policies. This is positive for financial markets and
the global economy as expansionary monetary policy in the major
economies is helping to stabilize global growth," analysts at
Danske Bank said in a note.
"The discussion of a 'currency war' is also somewhat arbitrary
as all monetary-policy changes have the potential to affect a
country's exchange rate and one could therefore also label
interest-rate cuts as currency manipulation," they added.
Movers
Back in Europe, risk-sensitive sectors such as banks and
resource firms posted some of the biggest losses.
In the U.K., heavyweight miner Rio Tinto PLC (RIO) fell 1.1%,
while Antofagasta PLC shaved off 1.9%.
The FTSE 100 index traded 0.2% lower at 6,313.00, with HSBC
Holdings PLC (HBC) off 0.3%.
And in France, BNP Paribas SA lost 1.4%.
Shares of Accor SA erased 1.3%, as Deutsche Bank cut the hotel
operator to sell from hold.
The CAC 40 index was slightly lower at 3,659.82.
Germany's DAX 30 index bucked the negative trend and gained 0.2%
to 7,609.41.
Shares of Deutsche Lufthansa AG gained 1.4% as Deutsche Bank
lifted the airline to buy from hold.
Daimler AG picked up 1.5% after UBS added the car maker to its
most preferred list.
Shares of BMW AG slipped 0.5% as UBS cut the firm to neutral
from buy.
Outside the major indexes, shares of Novozymes AS lost 3.5%
after UBS cut the enzyme manufacturer to sell from neutral, saying
the valuation is too optimistic given the current growth
targets.
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