European Stocks Drop     

There is another drop in stocks. European stocks are headed for their largest drop in more than a month, and the growth of the profit will be far too small to place higher prices.
After analysts cut recommendations on the shares, Europe’s larger insurer, Allianz AG, and Siemens AG, Germany’s largest engineering company placed declines.
Ion-Marc Valahu, a fund manager at Agilis Gestion in Paris, said, "The stock market has been priced to perfection. Valuations are getting a little bit stretched and the catalyst, earnings is not there yet." European stock usually falls after they project disappointing profit margins. That was the reason why Royal Philips Electronics NV, Europe’s largest television marketer, fell. In London, for example, all 18 industry groups are falling.

Except for Iceland and Portugal, national indexes fell in all 18 western European markets. France’s CAC 40 dropped 0.9 percent, Germany’s DAX slid 1 percent, and the U.K.’s FTSE 100 declined 0.6 percent.

From four-year highs U.S. stock indexes dropped after analysts provided experts with rather disappointing news about dimmer outlooks on JP Morgan Chase &Co. and the Coca-Cola Co. The biggest decline this year was the Dow Jones Industrial which fell by 0.7 percent yesterday.

The U.S and Europe aren’t the only ones who are suffering like this. After South Korea’s Posco said profit slumped and gold fell for a second day, Asian stocks did too.