• European stocks close

Market news

14 June 2013

European stocks close

European stocks fell for a fourth week, the longest streak of losses in more than a year, as concern grew that central banks may reduce stimulus measures.

The Bank of Japan on June 11 refrained from additional stimulus measures to raise inflation and boost growth, continuing its April pledge to increase the monetary base by 60 trillion yen ($620 billion) to 70 trillion yen a year. Japan's economy expanded an annualized 4.1 percent in the first quarter, compared with a preliminary calculation of 3.5 percent, a Cabinet Office report showed on June 10.

In Indonesia, the central bank this week unexpectedly raised its key interest rate for the first time since 2011.

In the U.S., retail sales climbed in May more than forecast, Commerce Department data showed. A separate report the same day showed jobless claims fell more than estimated in the week ended June 7.

The Thomson Reuters/University of Michigan June preliminary index of consumer sentiment fell to 82.7 from a final reading of 84.5 the prior month, missing economist forecasts, a report showed today.

National benchmark indexes fell in 16 of the 18 western-European markets this week. The U.K.'s FTSE 100 lost 1.6 percent. France's CAC 40 decreased 1.7 percent and Germany's DAX Index (DAX) declined 1.5 percent.

Severn Trent slid 15 percent, its biggest weekly drop since October 2008. A bidding group led by Canada's Borealis Infrastructure Management Inc. abandoned a 5.3 billion-pound ($8.3 billion) plan to take over the water utility as a deadline expired on June 11.

Royal Bank of Scotland Group Plc slid 3.5 percent after saying June 12 that Chief Executive Officer Stephen Hester will resign this year. Hester said he is stepping down at the board's request as the state-controlled British bank prepares for privatization.

Kabel Deutschland advanced 11 percent, the biggest weekly gain since at least April 2010, after Vodafone said June 12 that it made a "preliminary approach" to discuss acquiring the German cable operator to expand in the broadband and TV markets.

Rhoen-Klinikum gained 6.2 percent after shareholders abolished a 90 percent voting threshold for mergers and other decisions. The German hospital operator said June 13 that shareholder B. Braun Holding GmbH is legally challenging the decision.

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