European Stocks Lack Drivers

Elena
05 Apr, 2006
Frankfurt

European averages traded near the flat line at mid-day as investors turned to profit taking. With no catalysts to drive the market, stocks erased earlier gains made on the back of strong U.S. markets close. The biggest decliner was EADS which fell 3.9% after DaimlerChrysler and Lagardere decided to cut their stakes in the concern.

[R] 8:15 AM European averages traded flat at mid-day.[/R]
European markets turned flat at mid-day dealings. Stocks opened higher, boosted by strong U.S. markets close, but the lack of catalysts like earnings or economic reports directed investors’ attention to interest-rate hikes and they decided to lock in recent gains. EADS stood out as one of the most notable losers after DaimlerChrysler and Lagardere decided to reduce their holdings in the aerospace concern by 7.5%. Shares of European Aeronautic Defense & Space Co. dropped 3.9%. The German DAX 30 edged down 0.01%, the French CAC 40 lost 0.1%, while London FTSE 100 inched up 0.01%.


[R]7:45AM Asian markets finished higher. The Nikkei dropped.[/R]
Asian-Pacific benchmarks finished broadly higher. The Nikkei was the sole decliner in the region, closing in the negative for a second consecutive session. The Japanese index traded in the positive throughout the session, lifted by technology stocks, but eventually lost ground on profit taking to finish down 0.3% at 17,243.98. Positive sentiment boosted shares of leading tech companies like camera maker Canon, up 3.8% and computer chip equipment maker Advantest Corp., up 3.9%. Across the Region Thailand shares surged to 3.05% after Prime Minister Thaksin Shinawatra announced he would hand in his resignation. China Shanghai Composite climbed 0.8%, Singapore Straits Times rose 0.5%, Australia’s All Ordinaries surged 0.8%, and South Korea’s Kospi gained 0.2%. Markets in Hong Kong and Taiwan were closed for a public holiday.