proceedings of Rio Tinto put pressure on European markets

Gold price could rebound after Mario Draghi, president of the European Central Bank speech

European shares fell under pressure from the reports of the devaluation of assets belonging to the Rio Tinto Mining and the resignation of its chief executive and a cautious outlook from AT. S. M.. L. chip electronic what most concerns that affect poor corporate results on the stock in the near term.

A significant decrease

The FTSEurofirst 300 index fell for the shares of major European companies about 0.1% to 1159 points. And Rio Tinto discount greater number of points from the index after falling 3.4% after the company announced the devaluation of assets by $ 14 billion and the resignation of its chief executive. Said Darren Easton, head of trading at Logic Investments: mixed corporate results so far in the short term, we will be in camp bears.

He added that the German DAX index, which fell 0.2% to 7675.95 points may continue to decline in the near term as the index came down from the moving average 20 days at about 7683 points, which some see as dealers sell signal. The benchmark FTSE 100 was 0.1%, while France’s CAC 40 settled little changed.

The resignation of the allocations

The global mining company Rio Tinto chief executive will resign after the company announced a non-cash allowances for impairment of $ 14 billion in its results for the year 2012 regarding the problems in Mozambique and the aluminum sector assets. The group said Tom Albanese will resign from his position as chief executive in agreement with the Board of Directors of the company and will be replaced by Sam Walsh, chief executive of the iron ore production sector.

As retiring Doug Ritchie, who led the deal buy Reffersdal company Mining for coal mining in Mozambique worth 3.9 billion Australian dollars or $ 4.1 billion in 2011 it would cut Rio value of coal assets in Mozambique by about $ 3 billion.

He said the company’s chairman Jean du Plessis said in a statement that the Board of Directors of Rio Tinto fully recognizes that a reduction of this magnitude with respect to relatively recent acquisition in Mozambique is unacceptable. He added: We also strongly resent being forced to make another significant reduction in our sectors of the aluminum industry though continue to be exposed to significant adverse changes in the world.