The euphoria over Washington’s plan to try to stop the financial sector turmoil didn’t last and European stocks slumped after Wall Street opened on Monday. They ended the day down more than 2%, erasing Friday’s steep advances. Investors are trying to sort out the details of the rescue plan.
Nathalie Pelras, Head of Equity Management at Richelieu Finance said it is a question of wait and see: “It’s far too early, these exceptional measures were in response to exceptional risks, so it’s logical that there was a technical increase (on Friday), but it was only technical and not fundamental, because it’s far too early for that.”
Retailers, airlines and travel companies were all pulled down by the higher oil prices. Among the losers… France’s Carrefour and Ryanair. Compass, the world’s largest catering company also lost value after a brokerage downgrade of its shares.