Yingli (YGE) Others Slip as European Austerity Could Hit Solar Budgets

Yingli Green Energy (NYSE: YGE) and its peers are showing some exceptional pressure Tuesday, following reports that Europe's issues might have a noticeable impact on the solar market as well.

According to Bloomberg, fears that Europe's austerity will hit solar budgets drove Yingli over 10 percent lower.

Europe is still the strongest market for solar sales, amid impending subsidy cuts expected later in the year.

Digitimes said Italy's solar market faces "disaster," with solar budgets being reduced to half their intended amount.

Cowen & Co. said First Solar (Nasdaq: FSLR) could slip below $10 per share, from a close above $14 on Monday.

Finally, Bloomberg quoted an analyst from Phoenix Partners Group in saying there will be much more consolidation in the solar industry before demand picks up.

Yingli is down about 10 percent late Tuesday, while First Solar is off about 1.4 percent. Traders will likely keep an eye on peers like JA Solar (Nasdaq: JASO), SunTech Power (NYSE: STP), SunPower (Nasdaq: SPWR), and Trina Solar (NYSE: TSL), among others.

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