This is being reported today throughout the media. I have added a chart of the banks (Societe General, Intesa Sanpaolo, Unicredit & Credit Agricole) plus Nokia who are being removed. Odds are a lot of this is being priced in, question is how much. The banks are underperforming the EAFE, a broader international market index by 40%. Nokia has recently begun to regain some ground. Hard to tell how much of this news is priced in. Odds are also that the Stoxx Europe 50 is likely to outperform other broad market indexes with the number of banks coming out, assuming the banks are about to implode.
Struggling mobile-phone maker Nokia (NOK) and three European banks — Societe Generale (FR:GLE), Intesa Sanpaolo (IT:ISP) and Unicredit (IT:UCG) — will be deleted from the Stoxx Europe 50 index, effective on the Sept. 19 open, Stoxx said Wednesday. Unilever (UL), LVMH Moet Hennessy (FR:MC), National Grid (NGG) and Air Liquide (FR:AI) will replace them. Stoxx also changed the Euro Stoxx 50 index — which only includes companies that trade in euro-area nations — by adding Volkswagen (DE:VOW3) preference shares and the clothing giant Inditex (ES:ITX) and subtracting conglomerate Alstom (FR:ALO) and French bank Credit Agricole (FR:ACA).
-Steve Goldstein; 415-439-6400; AskNewswires@dowjones.com