Weak European Stocks

Elena
12 Apr, 2006
Frankfurt

European markets traded in the negative at mid-day, reflecting a sharply lower close of U.S. markets and concerns that the strong increase in the oil price and the industrial metals will lead to higher interest rates. London FTSE 100 fell 0.6%, the German DAX 30 lost 0.6%, and the French CAC 40 dropped 0.9%.

[R] 8:15 AM European averages traded in the negative at mid-day.[/R]
European markets moved deeply in the negative at mid-day dealings, following a sharply lower close of U.S. markets overnight. Market sentiment was hurt by concerns that the strong increase in the oil price and the industrial metals will lead to higher interest rates. However, stock-exchange shares gained after the Nasdaq Stock Market acquired a 14.99% stake in the London Stock Exchange by buying the complete holdings of Threadneedle Investments for $781.7 million. Shares of the LSE jumped 15.6%. London FTSE 100 fell 0.6%, the German DAX 30 lost 0.6%, and the French CAC 40 dropped 0.9%.


[R]7:45AM Asian markets ended sharply lower.[/R]
Asian-Pacific benchmarks closed steeply lower, reflecting weak high technology stocks and concerns that rising oil prices could hurt U.S. consumption and exporter issues. Regional decliners were led by the Nikkei which fell 1.5% to 17,162.55. The third consecutive drop of the Japanese index was contributed by weakness in tech and financial shares. The chip related sector declined, dragged by Advantest, down 3.8%. Among other tech stocks, Toshiba dropped 2.6%, Sony fell 2.5%, while banking stock Mitsubishi UFJ Financial Group slipped 3%. At the same time, drug and wholesale food companies advanced. Across the region, Hong Kong’s Hang Seng was another sharp decliner, falling 1%, followed by Australia’s All Ordinaries, down 0.9%. South Korea’s Kospi was sent 0.2% lower by consumer electronics shares like L.G. Philips LCD and Samsung Electronics.