Shanghai Daily: Business - shanghaidaily.com
EUROPEAN stocks retreated last week on concern losses from the United States subprime-lending market are spreading through the region's broader economy. Vinci SA, the world's biggest builder, Ericsson AB and Anglo American Plc led declines of companies most affected by changes in the pace of economic growth. UBS AG, Europe's largest bank, and Barclays Plc fell after Goldman, Sachs & Co cut its recommendation on European banks. "We're maybe at the tip of the iceberg," said Franck Hennin, who helps oversee US$7.3 billion at Richelieu Finance in Paris. "The contagion from the US that we anticipated is becoming a reality. Many expected a year-end rally. Now the market is back-tracking." The Dow Jones Stoxx 600 Index fell 0.8 percent last week, led by construction and materials firms. The measure is heading for a 0.2 percent drop this year, weighed down by banks and financial-services companies on credit-markets losses, Bloomberg News reported. Goldman Sachs