Skip to Content
Market Update

European Markets Fall on Syria Fears

European indexes were trading lower early Wednesday after U.S. president Obama won support from Congressional leaders for a potential military action against Syria.

The FTSE 100 lost 0.4% in 8:49 a.m. London time. The CAC 40 Paris erased 0.5% while the DAX Frankfurt lost 0.3%.

On Tuesday, president Barack Obama's call to launch a strike against Syria gathered steam after a batch of Congressional leaders said they supported the call ahead of a key vote on possible retaliatory action against President Bashar Assad's regime.

The U.S. president urged the Congress to hold a prompt vote after its return from the summer recess next week.

Meanwhile, the French Parliament is also due to debate the Syria issue later in the day, although no vote is scheduled.

In economic news, French producer prices climbed in July from a month ago on the back of higher food prices, official data released.

Stocks on the Move

Financials were all trading lower in France. BNP Paribas SA dropped 0.6%, Credit Agricole SA retreated 0.9% as well while Societe Generale SA lost 0.2%.

German banks were listless too. Deutche Bank AG slipped 0.1% while Commerzbank AG gave up 0.2%.

In London, Barclays Plc. inched down 0.3% while Lloyds Banking Group was little changed.

Among miners, BHP Billiton Plc. fell 2.1% but Rio Tinto plc. gained 0.6%. Glencore Xstrata Plc. was also trading higher, up 0.8%.

In corporate news, Ryanair Holdings Plc. said it could miss its full-year profit forecast as increased competition forced it to slash fares and capacity. Shares of the airline plunged more than 14%.