Investing.com - European stocks fell from a five month high Wednesday on worries that banks will be forced to raise more capital than initially projected to survive the regions debt crisis.
After the close of European trade, the EURO STOXX 50 gave back 1.67%, France's CAC 40 fell 1.59%, while Germany's DAX 30 closed lower by 0.89%. Meanwhile, in the U.K. the FTSE 100 dropped 0.55%.
The bearish sentiment started when Italy's UniCredit stated it will sell shares at EUR1.943 to raise EUR7.5 billion. This is at a 43% discount to yesterday's closing price, excluding the rights value signaling the regions crisis is far from over.
Bond auctions started today with Portugal and Germany starting and Greece, Italy and Spain will follow up later in the month. These auctions are critical for the survival of the single currency.
John Plassard of Louis Capital Markets, told Bloomberg, "The European debt crisis has never really abated. Even though 2011 ended well, 2012 remains at risk. States will have to find EUR800 billion in the financial markets this year, so we should have a lot of market volatility ahead of us, at least during the first half."
Vestas Wind Systems plunged 18% after slashing its revenue and profit forecasts, while retailer Next Plc gave back 3.7% after sales missed estimates.
Banks led the decline with Banco Santander falling 4.4%, Banco Comercial Portugues giving back 7.3% and Banco Espirito Santo falling 6.7% on the session.
Meanwhile, in bullish news, ceramic package maker for the U.S. Air Force Egide soared 17% on climbing 2011 revenues. .
U.S. stocks traded slightly lower across the board in midday trading with the Dow Jones Industrial Average slipping 0.01%, the S&P 500 giving back 0.21% and the Nasdaq 100 dipping 0.09%.
Investors are awaiting U.S. unemployment claims, non manufacturing PMI and oil stockpile data on Thursday.
After the close of European trade, the EURO STOXX 50 gave back 1.67%, France's CAC 40 fell 1.59%, while Germany's DAX 30 closed lower by 0.89%. Meanwhile, in the U.K. the FTSE 100 dropped 0.55%.
The bearish sentiment started when Italy's UniCredit stated it will sell shares at EUR1.943 to raise EUR7.5 billion. This is at a 43% discount to yesterday's closing price, excluding the rights value signaling the regions crisis is far from over.
Bond auctions started today with Portugal and Germany starting and Greece, Italy and Spain will follow up later in the month. These auctions are critical for the survival of the single currency.
John Plassard of Louis Capital Markets, told Bloomberg, "The European debt crisis has never really abated. Even though 2011 ended well, 2012 remains at risk. States will have to find EUR800 billion in the financial markets this year, so we should have a lot of market volatility ahead of us, at least during the first half."
Vestas Wind Systems plunged 18% after slashing its revenue and profit forecasts, while retailer Next Plc gave back 3.7% after sales missed estimates.
Banks led the decline with Banco Santander falling 4.4%, Banco Comercial Portugues giving back 7.3% and Banco Espirito Santo falling 6.7% on the session.
Meanwhile, in bullish news, ceramic package maker for the U.S. Air Force Egide soared 17% on climbing 2011 revenues. .
U.S. stocks traded slightly lower across the board in midday trading with the Dow Jones Industrial Average slipping 0.01%, the S&P 500 giving back 0.21% and the Nasdaq 100 dipping 0.09%.
Investors are awaiting U.S. unemployment claims, non manufacturing PMI and oil stockpile data on Thursday.