European markets were declining fourth week in a row and erased from capital markets USD 2.7bn. This came from deepening fears in the financial sector when other banks, such as (81 EUR, 2,57%) of (97 EUR, 2,06%), announced problems of their funds. Anxiety on US mortgage market moved to Western Europe in a while where central banks decided to intervene and are pumping more and more money into circulation when to trying to stabilize situation.
This step only increased investors’ fears for some time that were, with no exception, selling their financial stocks instead of waiting for further problems of other financial institutions as well. Fears of economy decelerating negatively influenced sector of base materials as well. From the point of view of individual stocks, HBOS Plc lost -8,4%, (99 EUR, 4,63%) Group Plc (world’s biggest hedge fund trader) declined by 12%, (20 EUR, 4,12%) SA weakened by 4%, (34 EUR, 1,86%) by 3.4% due to fears that current problems can paralyse possible takeover. Also thanks to decline of metals price on commodity exchange markets, from the mining sector shares of (677 GBp, 10,48%) Plc declined the most, by 9.9% and Boliden AB by 7.1%. Copper price declined by 3% in the week while nickel lost 9% of its value. European DJ Stoxx 600 declined by 2.5% while narrower DJ Stoxx 50 by 2.4%. National indices in all eighteen Western Europe countries declined. German DAX Index took away 1.2%, French CAC 40 lost 2.7% and British FTSE100 3%.