European Equities Slide as Espirito Santo, Software AG Falls

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European Equities Slide as Espirito Santo, Software AG Falls

European Equities Slide as Espirito Santo, Software AG Falls

European stocks slid for a sixth session in eight days, pulled downwards by technology shares and household-good companies, as investors weighed remarks from Janet Yellen, Chair of the Federal Reserve.

Software AG tumbled 19% after announcing earnings dropped in the second three-month period. Imperial Tobacco Group Plc declined 3.7% after declaring plans to buy some brands from Reynolds American Inc. and Lorillard Inc. Banco Espirito Santo SA dropped to its lowest level since at least 1993 as a group firm was expected to pay a debt. PSA Peugeot Citroen added 3.2% as it reaffirmed its financial objectives and its stock received an upgrade from JPMorgan Chase & Co.

The Stoxx Europe 600 Index retreated 0.4% to 338.42 as day’s trading ended in London. The measure increased 0.9% yesterday after suffering its worst decline since March last week on worries over financial problems at some Portuguese lenders.

“It looks like Yellen has spooked the markets. Given the strong Empire manufacturing release today it seems Yellen’s testimony is too dovish and that the Fed might be behind the curve,”Ion-Marc Valahu of Geneva-based Clairinvest is quoted by Bloomberg as saying.

Yellen told congress that the Federal Reserve must continue with its bond purchase program following what she termed as persistent “significant slack” in workforce markets and inflation rates that remained below the central bank’s threshold.

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The DAX went down 0.3% to 9,751.08 points, reversing gains from late June’s record high of 10,050.98 points, Reuters reported.

Portugal Telecom plunged after news that Rioforte, which is Espirito Santo family’s holding firm, is preparing to seek legal protection from its creditors. The developments arose hours ahead of due date for Rioforte to pay a debt it owes Portugal Telekom.

The FTSEurofirst 300 index, a measure of pan-European stocks, descended 0.1% at 1,362.60 points. The euro zone’s benchmark Euro STOXX 50 index dropped 0.5% to 3,168.50 points.

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To contact the reporter of this story; Jonathan Millet at john@forexminute.com