By Sara Sjolin, MarketWatch
LONDON (MarketWatch) -- European stock markets dropped for a
third straight day on Friday as investors digested the latest
developments in Ukraine and Portuguese stocks tumbled ahead of the
country's exit from its international bailout program
The Stoxx Europe 600 index fell 0.2% to 337.81, after sliding
the most in a month on Thursday. Pushing the benchmark lower,
shares of Credit Suisse Group AG (CS) fell 1% after The Wall Street
Journal late Thursday reported that the bank is expected to pay
almost $2.5 billion to settle a tax probe.
More broadly, the European indexes moved lower as the standoff
between Ukraine and Russia was back in the spotlight. Bloomberg
News reported that Ukrainian troops have moved to force separatists
from their eastern rebel bases near the towns of Slovyansk and
Kramatorsk, citing acting President Oleksandr Turchynov. Meanwhile,
U.S. and U.K. diplomats vowed to impose further industrywide
sanctions on Russia if the country undermines Ukraine's
presidential election later this month.
Russia's MICEX index fell 0.1% to 1,3781.11 on Friday, while the
ruble (USDRUB) fell against the dollar. The greenback bought 34.82
rubles, up 0.1% from Thursday, according to FactSet.
Among other country-specific indexes, France's CAC 40 index lost
0.1% to 4,442.91, while Germany's DAX 30 index gave up 0.1% to
9,641.74. The U.K.'s FTSE 100 index rose 0.2% to 6,829.72.
The moves came after steep losses posted on Thursday, when
weaker-than-forecast euro-zone gross-domestic-product data and some
disappointing U.S. data sparked a selloff on both sides of the
Atlantic.
One of the European benchmarks hardest hit was Portugal's PSI 20
index , which slumped 2.7%. On Friday, the index continued to
slide, down 1.8% to 6,764.14, as the country prepared to exit its
international bailout program on Saturday.
"Standing on their own too soon perhaps? In light of the 'panic'
of yesterday afternoon the two are probably related [in today's
selloff]," said Richard Perry, market analyst at Hantec Markets, in
emailed comments.
Banks were among hardest hit stocks in Portugal, with shares of
Banco Espirito Santo SA off 9.3% and Banco Comercial Português SA
down 2%.
Elsewhere in Europe, car makers showed mixed moves after data
showed sales growth slowed in April. The Association of European
Car Manufacturers said car sales in the European Union totaled 1.09
million vehicles in April, an increase of 4.6% from the same month
a year earlier, marking a slowdown after a nearly 11% rise in
March.
Meanwhile, Credit Suisse upgraded the European auto sector to
overweight from benchmark. Shares of BMW AG rose 0.8% in Frankfurt,
while Daimler AG fell 1%. In Paris, Renault SA dropped 3.6% and
Peugeot SA lost 1.5%.
Intertek Group PLC slid 3.9% in London after the firm said
market conditions remain variable "with good growth in our key
product-related business lines, but weak demand in certain other
markets.
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