KGHM Polska Miedz SA (KGH), the copper producer with the biggest European mine output, headed for its steepest weekly decline in five months as Europe’s debt crisis intensified and a U.S. manufacturing gauge trailed estimates, eroding demand for industrial metals.
The shares tumbled as much as 2.6 percent to 116.9 zloty, and traded 1.1 percent lower as of 10:06 a.m. in Warsaw, extending this week’s loss to 8.4 percent, the biggest since the five days ended Dec. 16, according to data compiled by Bloomberg.
Moody’s Investors Service lowered debt ratings at 16 Spanish banks, citing a recession and mounting loan losses, while Greece’s credit rating was reduced one level by Fitch Ratings on concern the country may not be able to sustain membership in the euro area. Manufacturing in the Philadelphia region unexpectedly shrank in May, a report showed yesterday.
The benchmark Stoxx 600 (SXXP) lost 0.7 percent while copper in London gained 0.8 percent in Warsaw.
To contact the editor responsible for this story: Gavin Serkin at firstname.lastname@example.org