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European stocks declined, extending last week’s retreat, as the Group of 20 nations rejected calls from the euro area to increase the International Monetary Fund’s lending resources.
G-20 officials told the euro area’s political leaders to provide more financial firepower before they consider lending their support, putting the onus on Germany, already the biggest national contributor to the bailouts.
Germany went to the Mexico meetings of finance ministers and central bankers urging G-20 nations to find further money that the IMF could channel to the euro area.
IMF Managing Director Christine Lagarde, who attended the talks, said she wants to increase the fund’s lending capacity by $500 billion so that it can fend off “further shocks” to the global economy.
National benchmark indexes fell in 13 of the 17 western- European markets that were open today. France’s CAC 40 Index fell 0.7 percent, Germany’s DAX Index lost 0.2 percent and the U.K.’s FTSE 100 Index slid 0.3 percent.
HSBC fell 3.7 percent to 553.5 pence, the biggest contribution to the Stoxx 600 (SXXP)’s retreat, after reporting a 15 percent increase in pretax profit to $21.9 billion last year. That missed the $22.3 billion median analyst estimate.
Maersk slid 3.7 percent to 43,840 kroner after the shipping company posted a 43 percent drop in 2011 profit to 15.2 billion kroner ($2.7 billion). That compared with the average analyst estimate of 14.8 billion kroner. Falling freight rates pushed its container line to a loss in 2011. The company said that the division will also lose money in 2012.
Porsche SE rallied 3.1 percent to 50.07 euros after people familiar with the matter said Volkswagen AG (VOW), Europe’s largest carmaker, is close to a deal to purchase the 50.1 percent stake in Porsche’s automotive business that it doesn’t already own. The company may announce a plan within the next two weeks, said the people who declined to be identified.
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