AFX European summary - late

LONDON (AFX) - AFX European summary - late European markets at close

LONDON (AFX) - UK blue chips came off earlier lows in afternoon trade as Wall Street recovered losses, but London shares still closed substantially lower, under particular pressure from the banking and mining sectors, dealers said.

The FTSE 100 index dropped almost 2 pct to end 101.3 points lower at 5,519.6, having slumped to lows of 5,467.4 earlier in the session.

FRANKFURT (AFX) - Shares closed sharply lower following a weak opening on Wall Street and after the latest ZEW German economic expectations index missed forecasts, raising concerns over the recovery of Europe's biggest economy, dealers said.

At the close, the DAX 30 index was 103.41 points or 1.92 pct lower at 5,292.14, having moved between 5,262.21 and 5,337.68 in today's session.



PARIS (AFX) - Shares tumbled once again, as on other European indices, as Wall Street slid further after US inflation data failed to assuage the market's uncertainty on the outcome of the forthcoming interest rate decision by the Federal Reserve, dealers said.

The main CAC-40 index closed sharply lower, down 105.59 points or 2.24 pct at 4,617.59, having dipped to 4,594.34 earlier, on trading volume of 6.60 bln eur.

Of the CAC-40 stocks, 39 were lower and one was higher.

AMSTERDAM (AFX) - Shares ended lower, tracking a lower Wall Street, after US macro-economic inflation data disappointed investors in the absence of guiding local news, dealers said.

The AEX closed 8.85 points or 2.10 pct lower to 412.87, after trading in a range of 410.29-414.63.

Government bonds traded mostly up while the euro stood at 1.2570 usd versus 1.2578 usd late yesterday.

MADRID (AFX) - Share prices closed sharply lower in brisk trade, extending losses in line with other markets in Europe and the US as continued concerns of inflationary pressures and potential rate hikes hit interest rate-sensitive stocks, dealers said.

The IBEX-35 index closed down 233.9 points or 2.12 pct at 10,797.5, after trading in a range of 10,772-10,909, on turnover of 6,308 bln eur.



MILAN (AFX) - Share prices closed a volatile session lower as concerns over inflation and higher interest rates continued to depress equities and favour bonds, while Tenaris outperformed on news of a US acquisition, dealers said.

The Mibtel index fell 1.53 pct to 26,585 points and the S&P/Mib closed down 1.40 pct at 34,928, while volumes rose to 8.37 bln eur from 6.06 yesterday.

ZURICH (AFX) - Swiss shares closed sharply lower across the board, tracking Wall Street and underperforming other European markets amid interest rate jitters and led down by financials, dealers said.

The SMI closed 177.83 points or 2.42 pct lower at 7,154.86, and the SPI was down 135.35 points or 2.37 pct at 5,573.99.

Top faller in Zurich was Baloise, down 3.95 sfr or 4.6 pct at 81.55, followed by Credit Suisse, down 2.95 sfr or 4.5 pct at 62.85 sfr.

BRUSSELS (AFX) - Shares closed lower as concerns ahead of key data in the US this week continued and Umicore dropped further on raw material prices, traders said.

The Bel 20 closed down 76.84 points or 2.18 pct at 3,445.10.

STOCKHOLM (AFX) - Shares closed sharply lower after marginally stronger-than-expected US PPI data data fuelled concerns that central banks around the world will raise rates to address the inflation threat, brokers said.

The OMX Stockholm index closed down 3.14 pct at 282.71 and the OMX Stockholm 30 down 2.66 pct at 878.16. Turnover was 28.783 bln skr.

HELSINKI (AFX) - Share prices closed lower in line with Europe, as continued concerns over inflation and interest rates encouraged further profit-taking, and with Nokia closing lower, shrugging off a broker's upgrade, brokers said.

At 6.30 pm, the OMX Helsinki 25 closed 3.27 pct lower at 2,243.21 and the OMX Helsinki was down 2.95 pct at 8,032.03 on 1.477 bln eur turnover, while the Helsinki CAP portfolio was 3.22 pct weaker at 4,223.48.

COPENHAGEN (AFX) - Share prices closed sharply lower in line with the negative trend on global stock markets, with falls seen across the board, brokers said.

The OMXC20 index closed 13.59 points lower at 350.03 and the OMXCB Benchmark index was down 13.39 points at 324.97.

OSLO (AFX) - Share prices closed sharply lower in line with depressed European stock markets, with oil and offshore stocks hard hit by tumbling crude prices, brokers said.

The OSEBX Benchmark index closed 13.26 points lower at 340.78 and the OSEAX All Share index was down 15.12 points at 389.76.

ATHENS (AFX) - Shares closed sharply lower on international macroeconomic uncertainty and tracking falling European bourses, but Emporiki Bank strongly outperformed after it was announced that France's Credit Agricole bid for full control, brokers said.

The ASE general index closed down 3.8 pct at 3,394.7 points and blue chips closed down 2.9 pct at 1,862.4 points.

PRAGUE (AFX) - Czech shares closed lower again, in line with markets across Europe, CIA news agency reported.

The PX Index dropped 3.03 pct to 1,166.6 points.

'The decline reached as much as 6 pct in the course of the day, but luckily the index managed to correct to a loss of just 3 pct in the afternoon. Zentiva and mainly CEZ saw substantial trade volumes of over 5 bln korunas,' CIA cited Fio's broker Pavel Hadrousek as saying.

TOP STORIES

WASHINGTON (AFX) - Inflation at the wholesale level slowed in May after two big months of increases, even though gasoline prices and inflation pressures outside of energy and food continued to climb.

The Labor Department reported Tuesday that its Producer Price Index, which measures inflation pressures before they reach the consumer, was up just 0.2 percent last month, even better than the 0.4 percent rise that many economists had been expecting. The improvement reflected the fact that energy prices rose by just 0.4 percent after a 4 percent jump in April, and food prices actually fell by 0.5 percent.

PETERSBURG (AFX) - Gazprom will not 'give up its monopoly on (Russian) gas transportation' abroad, notably to Europe, President Vladimir Putin told foreign investors here today.

'The level of development of our legal framework does not allow us now to give up Gazprom's monopoly on gas transport to our main customers,' Putin told an international economic forum in Saint Petersburg.

'We do not foresee any change in this area in the near future.'

European countries that are heavily dependent on Russian gas have pressed Moscow for several months to allow foreign access to Russian gas pipelines.

On June 7 however, Russian newspaper said that lawmakers had drafted a bill to formalise Gazprom's monopoly over the country's gas exports in a direct rebuff to European demands.

OSLO (AFX) - Scandinavian Airlines System's Norwegian unit SAS Braathens was today accused of illegally obtaining information about its Norwegian competitor.

The National Authority for Investigation and Prosecution of Economic and Environmental crime in Norway (Oekokrim) said it today accused SAS Braathens of acquiring data in an unauthorized way, and misusing confidential information belonging to Norwegian Air Shuttle.

Okkokrim said after a cooperation agreement between the two comapanies expired in Dec 2002, SAS Braathens continued to receive information relating to ticket reservations by Norwegian Air Shuttle until Nov 18 2005.

PARIS (AFX) - EADS unit Airbus said it has informed clients that deliveries of its forthcoming A380 super-jumbo are to be delayed by six-seven months, due to production issues.

It said the delay is for industrial reasons only, but warned that a maximum of nine planes can be delivered in 2007.

The company said it is still on track to win certification for the aircraft and deliver the first unit at the end of 2006.

VIENNA (AFX) - China and Russia refused today to join with other big powers in threatening sanctions over Iran's nuclear program during diplomatic jostling at the UN nuclear watchdog.

In a further blow to US efforts to present a united front at the International Atomic Energy Agency talks, non-aligned nations prepared a statement reaffirming Tehran's right to enrich uranium.

Diplomats played down the significance of the cracks, however, saying IAEA members would try not to hinder an international offer to Iran of benefits if it reins in its nuclear ambitions.

BRUSSELS (AFX) - The European Commission said EU countries have so far failed to take advantage of the economic recovery to get their public finances in order, and must do so this year and next.

'The budgetary plans formulated by member states for 2006 and the commission's recent economic forecasts suggest that the current recovery is so far not being used to accelerate fiscal consolidation and place public debt on a firmly declining path,' it said in its first report on the revamped stability and growth pact implemented a year ago.

LONDON (AFX) - BAE Systems PLC has completed a programme of measures to address the 3.1 bln funding deficits in its principal UK pension schemes.

The company has agreed to additional one-off contributions of cash and assets to the schemes, including one-off contributions by the company totaling 1.087 bln stg comprising the transfer of assets and cash.

BAE said 661 mln stg will be contributed in 2006 with the balance over 10 years. The cash contribution in 2006 will be 181 mln stg. Some 242 mln stg of the contributions will be made through property assets.

FRANKFURT (AFX) - Deutsche Boerse AG is considering changing its merger proposal for Euronext NV to include a higher cash component but a lower share component, sources told AFX News affiliate dpa-AFX.

'An adjustment of the cash and share components (in Deutsche Boerse's bid) is currently being examined -- leaning towards a higher cash component,' the source said.

FRANKFURT (AFX) - Bayer AG said it does not rule out buying Schering AG shares for above 86 eur per share, adding that the highest price would be valid for all shareholders who have tendered their shares to the company.

This would still be conditional on the minimum acceptance rate of 75 pct being reached before the expiry of the 86 eur per share tender offer at midnight tomorrow.

Bayer had yesterday bought 23.36 pct of Schering's shares in the market, while the tendered shares represented 36.78 pct, representing a decline from this weekend's announced 38.16 pct tendered shares, meaning some shareholders had withdrawn their shares from the offer.

Bayer's total is now 60.15 pct.

Meanwhile, Merck KGaA now holds 20.71 pct of the shares in Schering.

MADRID (AFX) - Banco Bilbao Vizcaya Argentaria SA said its acquisition of Texas Regional Bancshares Inc and State National Bancshares Inc will increase its EPS target for 2007 by 0.46 pct and for 2008 by 0.75 pct.

In a presentation to analysts on the deal, BBVA said the EPS target for 2009 will be enhanced by 1.05 pct.

Late yesterday, the Basque bank said it will pay 2.16 bln usd cash for Texas Regional Bancshares and about 480 mln usd for State National Bancshares. The operation will be fully cash funded, with the bank using capital gains from the sale of its 15 pct stake in Banca Nazionale del Lavoro SpA and its entire 5.04 pct stake in Repsol YPF SA. newsdesk@afxnews.com lam/jfr COPYRIGHT Copyright AFX News Limited 2005. All rights reserved. The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News. AFX News and AFX Financial News Logo are registered trademarks of AFX News Limited