On Friday European stocks declined from a four-month high as a sell-off in Deutsche Bank AG overshadowed the biggest rally in Nokia Oyj shares since May. Asian shares and US index futures advanced.
Deutsche Bank fell 5.2 per cent after people with knowledge of the talks said Germany’s largest bank is considering a stock sale of as much nine billion euros ($11.4 billion). Gas Natural SDG SA lost 3.9 per cent after GDF Suez SA sold its entire stake in the company. Nokia rallied five per cent after naming Microsoft Corp.’s Stephen Elop as its new chief executive officer.
European shares fell during early trading as reports that Deutsche Bank plans to raise capital sparked worries about the whole banking sector. The FTSEurofirst 300 index of top European shares was down after rising one per cent in the previous session to a four-month closing high.
Other than Deutsche Bank, banks to fall included Commerzbank, Credit Agricole and Societe Generale, down between 1.3 and 3.4 per cent. French utilities Suez Environnement and Veolia Environnement fell 3.2 and 3.1 per cent respectively after being downgraded by BNP Paribas. Novo Nordisk gained 2.1 per cent after it said Britain’s cost-effectiveness watchdog would back the Danish drugmaker’s newest diabetes drug Victoza in 1.2 mg doses for the treatment of type 2 diabetes. Stainless steel maker Outokumpu rose 2.6 per cent after Morgan Stanley raised its rating, citing strong Chinese demand, low inventory levels and potential nickel price upside.
The European benchmark FTSEurofirst 300 is on course for a gain of more than one per cent over the week, having risen 3.6 per cent in the previous week. It is up barely three per cent in 2010.
Asian stocks rose, lifting the MSCI Asia Pacific Index to its second straight weekly advance, as Japan boosted its estimate for second-quarter economic growth and fewer people applied for jobless benefits in the US. Japan’s Nikkei 225 Stock Average jumped 1.6 per cent as Prime Minister Naoto Kan unveiled details of a 920 billion yen ($11 billion) stimulus plan to boost consumption and create jobs.