European Stock Markets Decline (Bloomberg) (28-02-2008)

Feb. 28 (Bloomberg) -- Stocks were declining in Europe on banking stocks that were extending losses as well as disappointing results from the likes of AXA and Bayer.

Europe's Stoxx 600 declined for a second day, losing 0.9 percent. The MSCI Asia Pacific Index fell 0.5 percent, halting a three-day, 4.1 percent rally. The measure advanced 13 percent through yesterday since reaching a 14-month low on Jan. 22.

National indexes slipped in 14 of the 18 western European markets. France's CAC lost 0.9 percent as did Germany's DAX. The U.K.'s FTSE 100 retreated 0.8 percent.

Among banking stocks, Swiss bank UBS led declines across the board, falling by 4.3 percent; it was followed by BP, which shed 1.6 percent in line with a dip in the price of crude oil CLc1.

Strategists at New York-based Morgan Stanley this week said earnings in Europe may decline 16 percent this year. The firm, ranked first for its European equity strategy in last year's Thomson Extel survey, predicted earnings in the region probably rose 4 percent in 2007 and may increase 3 percent next year.

Source: Bloomberg