European stock indexes fell on Friday due to fears that the slowdown in the global economy will lead to a drop in corporate profits, reported Bloomberg.
The value index Dow Jones Stoxx 600 on the bidding down to a five-year minimum.
The British FTSE 100 fell 204.47 point, or 5.00% to 3883.36 points. The German DAX Xetra 30 index fell by 224.03 point, or 4.96% to 4295.67 points. The French CAC 40 closed at 117.08 point decline, or 3.54%, at around 3193.79 points. Composite index of pan-European Dow Jones Stoxx 600 lost 9.92 point, or 4.75% to 198.82 points.
Leading European stock markets, on Friday, collapsed following Asia. Asian stock indexes sharply collapsed to 10% on negative corporate news from several leading companies. The major portion of the negative message has the second largest in the world automakers Toyota Motor Corp to lower sales volume in the III quarter of 2008 to 6.4% for the first time in seven years. European car manufacturers also failed to please investors: the second largest European automobile manufacturer PSA Peugeot Citroen and truck manufacturer Volvo reduced annual profit forecasts because of falling profits in the III quarter.
Negative momentum demonstrated quotes shares the banking sector following the lowering of analysts Morgan Stanley annual price forecast Securities British bank HSBC.
As an analytical report Markit, in the October Euro zone economy declined at a rate unprecedented since the introduction of the euro in 1999, reported Financial Times.
Research results suggest that the expected recession in 15 countries in the euro may be delayed. "The financial crisis has developed into an economic crisis and the euro zone economy is shrinking as it is not declining in these countries has more than 10 years," said Chief Economist Chris Williamson Markit.
The index of business confidence in Italy in October fell to the lowest value in 15 years, reflecting the slowdown in consumer optimism and declines in the 4th largest economy in Europe, reported Bloomberg.
According to the Research Institute of Statistics of Italy (ISAE), this figure had fallen to 77.7 marks in points and in fact even in September, he was at a level of 81.8 points. These figures are far below the expectations of economists, who were interviewed Bloomberg, predicted decline to 81.7 points.
The index of consumer confidence fell this month to 102.2 from 102.8, paragraph to paragraph - figure recorded last month. In the first instance, the spending of consumers affected by rising interest rates on cash and mortgages, said ISAE.
Member of the European Central Bank (ECB) Evald Nevotons believes that the worst period of financial crisis behind us, but the prospects of prolonged recession in Europe could lead to a further reduction in the discount rate. This Novotns said in an interview with television channel CNBC.
In his view, the current week was a "turning point" in the financial crisis, and markets are now more confident in the effectiveness of anti-crisis measures, governments and central.
The ECB cut the discount rate by 50 basis points to 3.75 percent on Oct. 8 through coordinated action with other central. Analysts expect further mitigate the monetary policy by the end of 2008. However, many believe that the ECB will reduce the rate at the next meeting to be held on November 6.
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