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* STOXX 600, DAX and CAC all fall
* But UK's FTSE 100 rises as sterling loses more ground
* Edenred falls after UBS downgrade
By Sudip Kar-Gupta
LONDON, Oct 7 Continental European stock markets
fell on Friday, with vouchers company Edenred and
airline easyJet among the worst performers, although a
new slump in sterling propped up Britain's FTSE 100.
The pan-European STOXX 600 index was down by 0.5
percent and Germany's DAX and France's CAC both
retreated by a similar amount. The STOXX 600 has fallen by
around 7 percent since the start of 2016.
"European stocks look utterly uninteresting to me at the
moment. Corporate profits are weak and the economy remains weak
as well," said Andreas Clenow, chief investment officer at
Swiss-based ACIES Asset Management.
Edenred fell 4.7 percent after UBS cut its rating on the
stock to "neutral" from "buy". EasyJet fell 3.3 percent after
broker downgrades following its profit warning on Thursday.
However, the FTSE 100 managed to gain 0.5 percent, since the
slump in sterling should benefit exporters and help the index's
international companies .
Sterling slid on new concern that British Prime Minister
Theresa May's government will back a "hard Brexit" where Britain
quits the European Union's single market in favour of imposing
controls on immigration.
That could hinder inward and outward trade and constrict the
foreign investment needed to fund Britain's current account
deficit, one of the biggest in the developed world.
Concern over European banks were also weighing on stocks,
said Francois Savary, chief investment officer at Geneva-based
fund management and consultancy firm Prime Partners.
Deutsche Bank, whose shares rose on Friday but
remain near record lows, is fighting a fine of up to $14 billion
from the U.S. Department of Justice over the alleged mis-selling
of mortgage backed securities.
Investors are also concerned about bad debts in the Italian
"Europe seems to offer value, but concerns over the
financial system and political uncertainties - particularly with
the French and German elections next year - call for caution,"
said Savary, who has reduced his European equity allocation.
(Additional reporting by Atul Prakash, editing by Larry King)