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European stocks dropped before a meeting of the region’s finance ministers in Luxembourg and as the International Monetary Fund cut its global growth forecasts.
Finance ministers from all the 27 countries in the European Union will convene in Luxembourg today in the lead up to a summit of the region’s leaders in Brussels on Oct. 18-19.
Ministers from the 17-nation euro area yesterday declared the 500 billion-euro ($649 billion) European Stability Mechanism operational. They also said Spain, the permanent rescue fund’s biggest potential near-term customer, isn’t on the verge of tapping it.
German Chancellor Angela Merkel visits Greece today for the first time since the debt crisis began in 2009 after the finance ministers yesterday hailed the country’s determination to cut its budget and reshape its economy, raising the chances that aid will keep flowing to Greece.
In Washington, the International Monetary Fund cut its global growth forecasts as the euro area’s debt crisis intensifies and warned of even slower expansion unless the U.S. and Europe address threats to their economies.
Banco Popular Espanol SA and Bankia SA led losses, both falling more than 3.5 percent in Madrid.
Leoni AG, Aggreko Plc and Capita Plc all lost at least 3 percent as analysts downgraded the shares.
Marine Harvest ASA slid 2.5 percent after third-quarter operational earnings missed an analyst estimate.
FTSE 100 5,829.08 -12.66 -0.22%
CAC 40 3,413.55 +7.02 +0.21%
DAX 7,261.84 -29.37 -0.40%
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