By Sara Sjolin, MarketWatch
LONDON (MarketWatch) -- European stock markets moved sharply
lower on Monday, as continued uncertainty about growth in emerging
markets triggered a flight out of riskier assets such as
equities.
The Stoxx Europe 600 index lost 0.8% to 322.20, on track for the
lowest closing level since Dec. 20.
On Friday, the benchmark ended its worst week since June, after
renewed worries about growth in China spurred a sharp selloff in
emerging-markets currencies. Currencies in those regions were still
dropping on Monday, with the Turkish lira extending its
record-breaking slide and South Africa's rand falling further. Asia
markets closed in deep-red territory, while U.S. stock futures
pointed to a higher start on Wall Street, following steep declines
last week.
Adding pressure on the pan-European index on Monday, shares of
BG Group PLC sank 15% after the energy company warned its
oil-and-gas output this year will be lower than previously forecast
partly due to turmoil in Egypt. The group declared "force majeure"
on contracts in Egypt, because the country's government had not
honored BG's share of gas from fields, leading to high levels of
export volumes being diverted back to the local market.
Vodafone Group PLC (VOD) dropped 5.9% after AT&T Inc. (T)
said it has no intention of making an offer for the U.K. telecoms
firm. In other Vodafone news, British newspaper the Times reported
that the group has approached the private-equity owners of a
Spanish broadband operator about a potential 7 billion pound ($11.6
billion) offer. A representative from Vodafone declined to comment
on the report.
On a more upbeat note, shares of LM Ericsson Telefon AB gained
2.5% after it signed a deal with Samsung Electronics Co. on global
patent licenses, putting an end to related litigation between the
two companies.
Upbeat German business-confidence data failed to lift the
broader trading mood. The Ifo Business Climate index rose for a
third time in a row in January to reach a two-and-a-half-year high,
while the assessment of the current business situation in Germany
climbed to its highest level since June 2012.
The DAX 30 index , however, gave up 0.3% to 9,367.25. Elsewhere,
the U.K.'s FTSE 100 index slid 1.4% to 6,569.09, and France's CAC
40 index dropped 0.1% to 4,157.93.
Shares of Lanxess AG rallied 8.5% in Frankfurt after the
chemicals firm said chief executive Axel Heitmann will leave at the
end of February, to be replaced by Matthias Zachert, currently
chief financial officer at Merck KGaA . Merck shares slid 10%.
Shares of Banco Popolare SC dropped 13% after the Italian bank
said on Friday it will to raise as much as EUR1.5 billion through a
rights issue in an effort to boost capital. Other Italian banks
mirrored the losses, with Banca Popolare dell'Emilia Romagna SCARL
down 8.2% and Banca Popolare di Milano SCARL 5.6% lower.
More must-reads from MarketWatch:
BOE's Carney warns bankers misconduct is an issue
How much gas in economy's tank? Let's see
Taper threatens Hong Kong property
Subscribe to WSJ: http://online.wsj.com?mod=djnwires