European Stocks Decline on Earnings (Bloomberg) (27-02-2008)

Feb. 27 (Bloomberg) -- European stocks were declining on Wednesday as investors became concerned over earnings following an announcement by U.K. mortgage lender HBOS Plc, saying that corporate lending and profit margins are declining as well as lower than expected results from Bouygues SA. Also weighing on shares was the dollar's drop to a record low of $1.50 per euro.

Europe's Dow Jones Stoxx 600 Index retreated for the first time this week, decreasing 1 percent to 326.86 as of 10:07 a.m. in London. Futures on the Standard & Poor's 500 Index slipped 0.4 percent, while Asia's regional index added 2.3 percent.

Germany's DAX Index lost 0.5 percent, as did France's CAC 40. The U.K.'s FTSE 100 declined 0.9 percent.

HBOS dropped 7.4 percent to 653 pence. The lender said second-half profit fell 8.9 percent as the company wrote down the value of subprime mortgage-related investments.

 Source Bloomberg