Europe mid-morning: Growth concerns weigh on stocks
European equities have started the week lower, following the World Bank’s cutting of its forecast for economic growth in “developing East Asia” this year to 7.2% from 8.3% in 2011, its slowest pace since 2011 and below the 7.6% forecast in May.
Furthermore, and acting as a backdrop, in its semi-annual World Economic Outlook (WEO)-slated for release tomorrow- the International Monetary Fund (IMF) is expected to cuts its forecast for world growth. This as some observers worry that “global rebalancing” is proceeding too slowly.
Of more immediate concern, investors are closely watching events in Greece and Spain. More specifically, European Central Bank (ECB) governing council member Jorg Asmussen has been cited as saying that Greece cannot be given more time by the central bank to meet its commitments, as that would amount to state financing.
On a more positive note, European Comission commissioner Olli Rehn believes that the Eurogroup will show its support for Greece when it meets today. German Chancellor Angela Merkel will visit Greece tomorrow.
On the corporate front, the best performance is now to be seen in the following industrial groups within the DJ Stoxx 600: Automobiles (1.87%), Basic resources (-1.64%) and Construction (-1.35%).