Danish jeweller Pandora loses some of its shine

Eurostoxx 50: 2,544.89 (–48.45) Frankfurt DAX: 6,796.75 (–157.23) Paris CAC: 3,522.79 (–65.26):EUROPEAN STOCKS fell yesterday, amid concern that a slowdown in the world's largest economy may derail global growth.

European stocks became the first major region to enter a so-called correction, with the Stoxx 600 dropping 10 per cent from this year’s highest level as falling Spanish and Italian bonds showed the sovereign-debt crisis is spreading.

The Stoxx Europe 600 retreated 1.3 per cent.

“There’s a vicious circle between markets and the economy, with poor economic data refuelling negative sentiment,” Philippe Gijsels, head of research at BNP Paribas Fortis Global Markets, said.

“There are enough elements on the table to create a nervous environment,” he said.

National benchmark indexes fell in all 18 western European markets.

Italian and Spanish 10-year bonds dropped, pushing yields up to euro-era records against benchmark German bunds, on concern that slowing growth will hamper efforts to tame the nations’ debt loads.

Pandora, a Danish jewellery maker, tumbled 67 per cent to 48.50 kroner, its biggest drop on record, after cutting its full-year forecast and reporting that chief executive officer Mikkel Vendelin Olesen quit. The company also posted second-quarter earnings before interest and taxes of 440 million kroner ($84 million), compared with an average estimate of 611 million kroner.

Metro dropped 6.8 per cent to €35.33 after saying that second-quarter net income fell to €40 million, missing an €87.8 million analyst estimate.

Wacker Chemie retreated 14 per cent to €111.75 after saying profit rose to €142.7 million in the second quarter.

Northumbrian Water rose 4.3 per cent to 468.70p.

Cheung Kong Infrastructure, the company controlled by Hong Kong billionaire Li Ka-Shing, agreed to buy the UK utility for about £2.4 billion.

Royal DSM gained 1.1 per cent to €39.24.

Rotork soared 8.4 per cent to 1,700p as the company predicted that full-year sales will be “materially ahead” of previous forecasts because of strong order intake. – (Bloomberg/Reuters)