European midday: Markets turn negative

26th Jul 2010 13:04

Europe's main markets are now lower as drugmakers weigh, but banks are still largely higher following the results of the European stress tests.GlaxoSmithKline dropped on rumours that the UK firm may be interested in buying US rival Genzyme. Novartis and Roche are also stuck in the red.After the close on Friday, EU lenders were given a largely clean bill of health when European banking regulators released the results of their so-called stress test. According to the eagerly anticipated results, 84 out of the tested 91 European banks would be able to cope with future economic blow-ups. Germany's Hyper Real Estate, Greece's Atebank and five Spanish banks- Banca Civica, Diada, Espiga and Unnim- failed the test. However, all listed Spanish banks passed. The overall capital shortfall among the failed banks was €3.5bn. Investors reacted positively to the news. Societe Generale is the biggest riser in France, closely followed by BNP Paribas and Credit Agricole.Across the markets, the Dax in Frankfurt is 15 points lower at 6,151, with the Cac down 12 points to 3,596. The Swiss market is 50 points lower at 6,152.Elsewhere, BP has confirmed it will hold a board meeting today to decide the fate of chief executive Tony Hayward, but said no final decision has been made. Widespread reports over the weekend suggested Hayward is set to step down, but BP said its board will decide this evening on his future and also on the size of any provisions for the Gulf of Mexico disaster. CAC 40 - RisersSociete Generale (GLE) € 39.10 +2.88%Dexia (DEXB) € 3.40 +2.78%Alcatel-Lucent (ALU) € 2.12 +1.98%Credit Agricole (ACA) € 9.46 +1.10%LVMH (MC) € 94.92 +0.87%Sanofi-Aventis (SAN) € 45.90 +0.86%Lagardere SCA (MMB) € 28.06 +0.83%BNP Paribas (BNP) € 50.17 +0.70%Unibail-Rodamco (UL) € 148.65 +0.51%Peugeot (UG) € 24.31 +0.43%CAC 40 - FallersST Microelectronics (STM) € 6.34 -2.48%EDF (EDF) € 31.37 -1.54%ArcelorMittal SA (MT) € 24.90 -1.50%EADS (EAD) € 17.78 -1.28%Vallourec (VK) € 79.93 -1.25%GDF Suez (GSZ) € 25.07 -0.97%Veolia Environnement (VIE) € 19.92 -0.82%Air Liquide (AI) € 87.10 -0.77%L'Oreal (OR) € 82.78 -0.71%Schneider Electric (SU) € 89.02 -0.65%