Europe stocks move lower, led by banks, miners Moody’s says pressure remains on euro-area sovereigns

By Barbara Kollmeyer, MarketWatch







MADRID (MarketWatch) — European stock markets traded lower on Monday,
led by banks and miners. Sentiment was dampened after Moody’s Investors
Service said measures announced at last week’s European Union summit
won’t be enough to take pressure off euro-area sovereigns.







The Stoxx Europe 600 index


/quotes/zigman/2380150 XX:SXXP
-0.92%



fell 0.8% to 238.56, following a 1.2% rise on Friday, the biggest
percentage gain since Nov. 30. Investors generally applauded efforts by
euro-zone leaders to forge closer fiscal ties to address the sovereign
debt crisis.









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However, Moody’s said Monday that extra measures announced by
policymakers offered little that was new. Moody’s said it will still
review the ratings of all European Union countries during the first
quarter of next year.







“The announced measures therefore do not change Moody’s previously
expressed view that the crisis is in a critical and volatile stage, with
sovereign and bank debt markets prone to acute dislocation which
policymakers will find increasingly hard to contain,” Moody’s said in a
statement.







Italian bond yields crept higher ahead of a government debt auction, while the French government is also due to issue debt.







Banks shifted lower, with HSBC Holdings PLC


/quotes/zigman/13843 UK:HSBA
-1.63%






/quotes/zigman/207333/quotes/nls/hbc HBC
+1.33%



down 1.3%, Banco Santander SA


/quotes/zigman/205154 ES:SAN
-1.94%






/quotes/zigman/188106/quotes/nls/std STD
+3.26%



off 1.4% and Standard Chartered PLC


/quotes/zigman/22532 UK:STAN
-1.58%



down 1.7%.







The German DAX 30 index


/quotes/zigman/2380246 DX:DAX
-1.50%



fell 1.2% to 5,912.53, led by utilities E.On AG


/quotes/zigman/516256 DE:EOAN
-2.05%



and RWE AG


/quotes/zigman/271645 DE:RWE
-1.58%



, off 2% and 1.7%, respectively. Analysts at Bank of America Merrill
Lynch downgraded E.On to neutral from buy and cut its price objective on
RWE to 27 euros from 29 euros ($36 to $39), citing weak Europe
economies. Shares of RWE last traded at €27.48.







Shares of Societe Generale SA


/quotes/zigman/167380 FR:GLE
-1.23%



fell 2% in Paris, helping drag the French CAC 40 index


/quotes/zigman/3173214 FR:PX1
-1.29%



down 1% to 3,139.27. Steelmaker ArcelorMittal


/quotes/zigman/488292 NL:MT
-2.16%



fell nearly 3%.







The FTSE 100 index


/quotes/zigman/3173262 UK:UKX
-0.72%



fell 0.4% to 5,506.28 with shares of heavyweight miners BHP Billiton PLC


/quotes/zigman/184879 UK:BLT
-1.91%






/quotes/zigman/270355/quotes/nls/bhp BHP
+2.39%



off 1.4% and Rio Tinto PLC


/quotes/zigman/155899 UK:RIO
-1.83%






/quotes/zigman/182541/quotes/nls/rio RIO
+2.18%



down 1.3%.







Banks also fell, with Lloyds Banking Group PLC


/quotes/zigman/126322 UK:LLOY
-3.16%






/quotes/zigman/255656/quotes/nls/lyg LYG
+6.49%



and Royal Bank of Scotland Group PLC


/quotes/zigman/530544/quotes/nls/rbs RBS
+6.62%






/quotes/zigman/155978 UK:RBS
-2.93%



each off around 2%.