(MENAFN– ecpulse)
European shares saw a negative opening on Tuesday as traders weighed a possible sovereign default in Ukraine amid rising political uncertainty after the ousing of President Viktor Yanukovych.
The european benchmarks trailed gains in Asia this morning and the U.S. overnight, although the market received goods news that Italy`s Prime Minister Matteo Renzi won his first confidence vote in parliament yesterday. But the markedly increasing uncertainty in Ukraine is actually hammering markets sentiment again, given a potential increase in the possibility of a sovereign default.
As of 03:38 a.m. ET, the Stoxx Europe 600 fell 0.39% to 336.87. The industrial shares were less of a casuality, falling only 0.18% but the basic resources saw a strong plunge, with a 1.04% loss, and British Rio Tinto Plc leading the miners lower, falling 2.84% to 3,435 pence.
- London`s FTSE 100 lost 37.88 points or 0.65% to 6,827.47
- Paris`s CAC 40 fell lost 23.64 points, or 0.53% to 4,396.26
- Frankfurt`s DAX 30 lost 36.66 points or 0.45% to 9,672.99
Equities fell from the highest in six years, as disappointing earnigns offset data confirming German national output grew 0.4% in the fourth quarter of 2013 thanks to a sharp rise in exports, suggesting Europe`s largest economy will pick up steam into 2014.
Shares of Fresenius SE dropped more than 8% arond 109.35 euros this morning - the most on the Stoxx 600 - after the company posted worse-than-expected earnings.
Vivdendi SA followed suit with the profit disappointment, sending its shares more than 2% lower around 20.66.
Political uncertainty is still haunting the capital of Ukraine, even after the ousing of Presdient Yanukovych, as the country`s economic hardships is just getting worse, with exports plunging so deep after the crisis, according to many analsyts.
Standard & Poor`s Ratings Services slashed Ukraine`s long-term ratings to junk status on Friday, citing growing possibility that country may default on its debt.
In Italy, Prime Minister Matteo Renzi passed his first confidence vote in the upper house of parliament earlier today, winning 196 votes against 139, backed by his own center-left Democratic Party (PD), the small center-right party NCD party, centrist and other minor groups.
Renzi vowed to cut labor taxes, relax funds for investment in schools and deliver wide institutional reforms to tackle Italy`s economic relapse.
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