LSE & DAX..PRESSURE FROM TOP..

LSE Tumbles Most in Three Years on EU Clearinghouse Rules By Andrew Rummer - Sep 28, 2012 9:33 PM GMT+0530 London Stock Exchange Group Plc (LSE) sank the most in three years after saying European Union regulations will cut income at its Italian central counter party and may require LCH.Clearnet Group Ltd. to boost capital. Europe’s oldest independent bourse tumbled 8 percent to 943 pence at the close in London, the biggest retreat since April 2009. The decline trimmed this year’s gain to 19 percent. Recommendations published yesterday by the European Securities and Markets Authority proposed that 95 percent of a clearinghouse’s cash deposits placed with financial institutions must be collateralized with debt instruments meeting certain conditions regarding liquidity as well as credit and market risk, LSE said in a statement today. The rules, if implemented, will cut treasury income in fiscal 2014 while having no “material impact” in 2013 the London-based company said....http://www.bloomberg.com/news/2012-09-28/lse-tumbles-most-in-three-years-on-eu-clearinghouse-rules.html 

German Stocks Drop Before Spanish Banks Stress Tests By Tom Stoukas - Sep 28, 2012 9:23 PM GMT+0530 German stocks declined, their biggest weekly drop since June, as investors awaited the results of stress tests of Spain’s banks. HeidelbergCement AG (HEI) fell 2.2 percent after the stock was downgraded by CA Cheuvreux.Deutsche Lufthansa AG (LHA) dropped 1.7 percent after the airline’s chief executive officer said its cost-cutting program will fail to improve earnings this year. ThyssenKrupp AG (TKA) rose 0.8 percent after selling its tailored blanks unit for an undisclosed price.The DAX Index (DAX) lost 1 percent to 7,216.15 at the close in Frankfurt, having earlier climbed as much as 0.7 percent. The equity benchmark retreated 3.2 percent this week, its biggest retreat since the beginning of June. The gauge has still rallied 12 percent this quarter as theEuropean Central Bank and the Federal Reserve announced plans to buy bonds. The broader HDAX Index fell 0.9 percent today.“Most European markets have reached their highs and definitely need some good news in order to keep their upside momentum,” said Theodore Krintas, who helps manage 80 million euros ($103 million) as the managing director of Attica Wealth Management in Athens. Markets are now looking forward to the next European summit on Oct. 18, he said.Spanish 10-year government bonds erased their decline on speculation the nation will request a bailout, enabling the ECB to buy its debt on the secondary market...http://www.bloomberg.com/news/2012-09-28/german-stocks-decline-eon-bayer-allianz-lead-losses.html