Europe Slips on Miners

Elena
04 Apr, 2006
Frankfurt

European shares lost ground at mid-day, reflecting mixed close on Wall Street overnight and weakness in mining stocks like Rio Tinto and BHP Billiton, which failed to sustain recent gains. The German DAX 30 fell 0.2%, the French CAC 40 lost 0.5%, and London FTSE 100 dropped 0.4%.

[R] 8:15 AM European averages lost ground at mid-day.[/R]
European markets lost ground at mid-day trading, following a strong trading session Monday. The decline was contributed to a mixed closing of U.S. markets overnight as investors locked in profits as well as weakness in mining stocks, such as Rio Tinto and BHP Billiton, which failed to sustain recent gains. On the merger-and-acquisition front, Arcelor eased 1.8% after it unveiled a series of takeover defenses, including a special payment of more than $6 billion to shareholders. Automakers brightened the gloomy mood as DaimlerChrysler, Porsche, Volkswagen gained, following the release of U.S. sales data yesterday. The German DAX 30 fell 0.2%, the French CAC 40 lost 0.5%, and London FTSE 100 dropped 0.4%.


[R]7:45AM Asian markets finished largely higher. The Nikkei dropped.[/R]
Asian-Pacific benchmarks finished broadly higher. The Nikkei ended its seven-session winning streak to close in the negative after hitting a six-year high on Monday. The Japanese index fell 0.2% to 17,292.91, dragged by weakness in the tech sector and exporter blue-chip stocks like Kyocera, down 1.7%, Tokyo Electronics 1.6%, Honda Motor and Toyota Motor each falling 0.5%. Data released by BOJ, which showed that Japan’s monetary base declined 1% for the first time in five years, caused weakness among banking and insurance stocks with Mitsubishi UFJ Holding falling 1.6% and Mizuho Financial Group, down 0.3%. Across the region, Hong Kong’s Hang Seng reversed from earlier losses to rise 0.2% to 16,100.09, hitting a five-year high on fresh fund flows. South Korea’s Kospi advanced 0.4%, led by tech and auto stocks. India’s Sensex hit an all-time high of 2.5% at 11,564.36, lifted by foreign fund buying.