Europe Mixed Before Rates

Elena
06 Apr, 2006
Frankfurt

European shares traded mixed ahead of key interest-rate decisions at the Central European Bank and the Bank of England. Gains in the energy and tech sector helped offset losses in auto stocks. The German DAX 30 edged down 0.3%, the French CAC 40 fell 0.2%, and London FTSE 100 added 0.1%.

[R] 8:15 AM European averages were mixed at mid-day.[/R]
European markets were mixed at mid-day dealings ahead of key interest-rate decisions in Europe. Policy makers at the Central European Bank and the Bank of England are expected to leave interest rates on hold, 4.5% in the U.K and 2.5% in the euro zone. The euro rose 0.2% against the dollar to trade at $1.2308, while the sterling gained 0.3% to $1.7575. Gains in the energy and tech sectors supported market sentiment with oil companies Royal Dutch Shell and Total moving higher, as well as tech firms SAP and ASML also pushing up. Auto stocks like DaimlerChrysler and Volkswagen fell in Germany after Credit Suisse downgraded the whole sector. The German DAX 30 edged down 0.3%, the French CAC 40 fell 0.2%, and London FTSE 100 added 0.1%.


[R]7:45AM Stocks in Japan and Hong Kong surged.[/R]
Asian-Pacific benchmarks advanced across the region, led by gains in high-tech stocks, following a strong performance of the tech sector in U.S. markets and a five-year high of the Nasdaq. The Nikkei rose 1.4% to 17,489.33 with semiconductors lifted by news that Toshiba will enter a joint venture with U.S. company ScanDisk to build a factory, producing NAND-type flash memory chips. Shares of Tokyo Electron rose 3%, while chip equipment maker Advantest climbed 3.7%. Shares of the biggest Asian retailing group Aeon also contributed to the general strength, rising 4% on record profit. Hong Kong’s Hang Seng climbed 1.93%, lifted by banking giant HSBC Holdings and wireless provider China Mobile. Australia’s All Ordinaries gained 0.6% on higher oil and metals prices, while South Korea’s Kospi gained 0.6% on semiconductors.