Most European stocks declined after Japan’s economy grew more slowly than estimated and Fitch Ratings downgraded five Greek banks. Asian shares fell and U.S. index futures climbed.
National Bank of Greece SA and Alpha Bank SA slid as Fitch followed yesterday’s downgrade of Greece’s sovereign debt rating by cutting the lenders. Mitsubishi UFJ Financial Group Inc., Japan’s largest publicly traded bank, sank 5.2% in Tokyo. Losses on Europe’s Dow Jones Stoxx 600 Index were limited by a rally among travel companies as Stagecoach Group Plc increased its dividend.
The downgrade of Greece "is a warning," said Chris Tinker, head of equity research at ICAP Apollo Plc. "Governments have been spending a lot of money to get us out of these recessions and that is putting pressure on public finances," he told Bloomberg Television.
National Bank of Greece, the country’s biggest bank, slid 4.5% and Alpha Bank dropped 1.9%. Fitch cut National Bank, Alpha Bank and three other Greek lenders following its downgrade of the nation’s sovereign rating to BBB+ from A- yesterday.
Greece, the lowest-rated country in the euro region, may be the first major nation in the European Union to default on its debt since World War II, said Willem Buiter, the former Bank of England official who will join Citigroup Inc. as its chief economist next month. Greek Finance Minister George Papaconstantinou told Bloomberg Television today there’s "absolutely" no risk it will default.
Fortis, the insurer that was once Belgium’s largest financial-services firm retreated 5%, after Fitch said it may downgrade its rating to reflect the increased risk of holding Greek government bonds.
Stagecoach, operator of the U.K.’s busiest commuter train service, advanced 5.1% after increasing its interim dividend and reporting higher first-half revenue.
Debenhams Plc rose 3.9% after BofA Merrill Lynch Global Research upgraded the U.K.’s second-biggest department-store chain to "buy," saying “management will drive up profitability through better buying, mix and cost control.”
Man Group Plc, the biggest publicly traded hedge-fund manager, retreated 2.5% after the net asset value of its flagship Man AHL Diversified Futures Ltd. fund fell 4.3% in the week ended Dec. 7.
Related Stories
