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European markets battered
LONDON, England (CNN) -- European markets fell on Monday, led by tech and insurance stocks, after Wall Street continued its decline amid concerns over a prolonged war in Iraq and weak economic data. London's FTSE 100 fell 2.6 percent, or 95.2 points, to 3,613.3 and the CAC 40 blue chip index in Paris lost 4.2 percent, or 114.54 points, to 2,618.46, while Frankfurt's electronically traded Xetra Dax was down 4.3 percent, or 108.28 points, to 2,412.56 in late trading (the German market was set to close at 1900 GMT). The pan-European FTSE Eurotop 300, a broader index of the region's largest stocks, was down 3.6 percent. Investors were unmoved by U.S. military officials who claimed the war in Iraq was proceeding as planned. "Expectations about the war's duration are lengthening to months rather than weeks... with a bias to weaker stocks and stronger government debt markets, as investors stick to safe-haven trades,'' David Brown, chief European economist at Bear Stearns, told Reuters. Markets were also wary of the next round of corporate profits that begin in April. "Things aren't looking good, not just because the war could drag but also because the fundamentals both at a micro and macro level are far from encouraging,'' Cesar Martinez, head of international equity at Spanish fund manager GesMadrid, told Reuters. In corporate news, Munich Re (MUV2), the world's biggest reinsurer, dived 7.4 percent to 54.75 euros amid concerns that declining stocks markets were undermining its financial base. Investors are concerned it may have to raise billions of euros to repair it balance sheet. (Full story) British insurer Royal Sun & Alliance (RSA) fell 5.2 percent to 68.25 pence after announcing plans to raise $1.3 billion by floating its Australian business to prop up its balance sheet. (Full story) Commerzbank (FCBK), Germany's second largest bank, was down 6.2 percent to 6.19 euros in late Frankfurt trading after it announced hefty job cuts following its first annual loss in February. (Full story) Chip stocks fell sharply after the World Semiconductor Trade Statistics group said global chips sales fell 3.3 percent in February from January. STMicroelectronics (PSTM), Europe's largest chipmaker, dipped 5.6 percent to 17.56 euros in Paris, while No. 2 Infineon (FIFX) was down 6.8 percent to 6.18 euros in late Frankfurt trading and No. 3 Philips Electronics slid 6.2 percent to 14.39 euros in Amsterdam. Vivendi Universal (PEX), Europe's biggest media group, plunged 8.8 percent to 12.18 euros after Liberty Media filed a lawsuit alleging Vivendi hid its financial crisis while it negotiated a 2001 deal. (Full story) Airline stocks continued to come under pressure as carriers cut flights. Europe's biggest carrier British Airways (BAY) dipped 4.2 percent to 103.54 pence, while Deutsche Lufthansa (FLHA), the region's third largest airline, was down 0.5 percent to 7.99 euros in late Frankfurt trading. The AEX index in Amsterdam dropped 5.2 percent, Milan's MIB 30 dipped 3 percent and the SMI in Zurich lost 2.9 percent. In the U.S. on Monday, stocks tumbled again after data showed the closely watched Chicago producer price index fell to a worse-than-expected 48.4 in March from 54.9 in February -- compounding the market's already dire mood. (Full report) In early trading, the Dow Jones industrial average was down 2.1 percent to 7,975.39, while the Nasdaq composite fell 2 percent to 1,341.94 and the Standard & Poor's 500 index lost 1.8 percent to 847.78.
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