Fiat Chrysler leads European shares lower on emissions accusations
* STOXX 600 falls 0.6 pct, weighed by weaker auto stocks
* Fiat plummets on US accusation of excess diesel emissions
* Miners help UK's FTSE thinly extend record winning streak
* Drugmakers bruised by Trump drug prices barb
* Jeweler Richemont surged on well-received update (ADVISORY- Follow European and UK stock markets in real time on the Reuters Live Markets blog on Eikon - see cpurl://apps.cp./cms/?pageId=livemarkets) Adds details, closing prices)
By Danilo Masoni
MILAN, Jan 12 (Reuters) - European shares fell on Thursday weighed down by Fiat Chrysler, which wiped out one sixth of its value in a late session slide after the U.S. accused the car maker of excess diesel emissions, raising worries of heavy fines.
The STOXX 600 .STOXX fell 0.7 percent with the auto sector index .SXAP leading sectoral fallers, dragged down by 16.1 percent slump in Fiat Chrysler shares, the biggest faller on the pan-European benchmark index.
In spite of the auto woes and continued losses among pharma stocks on worries over pricing pressure in the U.S., Britain's blue chip FTSE 100 index inched up 0.03 percent, thinly extending to 13 days its record winning streak.
The U.S. Environmental Protection Agency accused Fiat Chrysler of using software that allowed excess emissions in 104,000 U.S. vehicles sold since 2014. The group led by Sergio Marchionne said it was it is "disappointed" with the EPA assertions. no surprise that another big auto maker is implicated for this was always going to be much bigger than just Volkswagen (DE: VOWG_p ) ...Fines and costs could be crippling if Volkswagen's experience is anything to go by," Neil Wilson, market analyst at ETX Capital said in a note.
A Milan-based trader says the market may conceive liabilities of around $3 billion, or 20 percent of Fiat's market value, assuming this case is similar to the one that hammered the German carmaker more than one year ago.
Fiat's 16 percent drop was its biggest ever and came as the stock was close to hitting a fresh record high. The auto index .SXAP fell 2.8 percent while elsewhere in the sector Germany's BMW BMWG.DE and Daimler DAIGn.DE and France's Renault RENA.PA all fell more than 2.6 percent.
"One thing is now clear - this scandal goes well beyond VW and Fiat Chrysler's involvement raises the possibility that other big carmakers are involved," Wilson added.
Europe's healthcare sector index .SXDP fell 1.9 percent after U.S. President-elect Donald Trump targeted pharmaceuticals' drug pricing in a press conference.
Trump on Wednesday commented on the issue of competitive drug pricing, saying pharmaceutical companies were "getting away with murder" by charging high drug prices UBI Banca UBI.MI was top gainer of the STOXX, up 9.1 percent on news the bank would buy three rescued Italian banks through a 400 million euro share issue. luxury goods group Richemont CFR.S was also a top European gainer, its shares jumping 8.6 percent after its trading update indicated a pick-up in demand for watches and jewellery. Peer Swatch UHR.S gained 5.4 percent. blue-chip FTSE 100 was underpinned by gains among basic resources and precious metals miners, which were boosted by a weaker dollar, with Randgold Resources RRS.L , Fresnillo FRES.L , and Anglo American AAL.L all up more than 2 percent.
Add Chart to Comment
We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
- Enrich the conversation
- Stay focused and on track. Only post material that’s relevant to the topic being discussed.
- Be respectful. Even negative opinions can be framed positively and diplomatically.
- Use standard writing style. Include punctuation and upper and lower cases.
- NOTE: Spam and/or promotional messages and links within a comment will be removed
- Avoid profanity, slander or personal attacks directed at an author or another user.
- Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
- Only English comments will be allowed.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.
Drop an image here or Supported formats: *.jpg, *.png, *.gif up to 5mb
Drop an image here or