Bonds, Oil Drag Europe

Elena
13 Apr, 2006
Frankfurt

European stocks turned lower at mid-day trading, reflecting weakness among oil companies and sharply higher bond yields. Positive news from Carrefour failed to offset the negative mood. The German DAX 30 fell 0.3%, dragged lower by DaimlerChrysler. The U.K.

[R] 8:15 AM European averages traded in the negative at mid-day.[/R]
European markets turned to the downside at mid-day trading, reflecting weakness among oil companies and sharply higher bond yields. Positive news from Carrefour failed to offset the negative mood. Shares of the world''s second-biggest retailer jumped 4.4% after the company reported first-quarter sales growth of 6% at constant exchange rates and 8.3% at current exchange rates. The German DAX 30 was the biggest decliner, falling 0.3%, dragged lower by sharp declines for DaimlerChrysler. The U.K.’s FTSE lost 0.1% after oil companies like BP and Royal Dutch Shell posted losses on lower oil prices. The French CAC 40 edged down 0.04%.


[R]7:45AM Asian markets slightly recovered.[/R]
Asian-Pacific benchmarks rebounded from recent declines to close slightly higher. The Nikkei erased early losses to finish up 0.2% at 17,199.15, supported by technology and bank issues which gained ground after three weak sessions. The market recovery followed a decision by UBS to raise its year-end Topix target on strong corporate results. Gainers included Tokyo Electron, up 3.1%, Canon, up 1.1%, and Sony rising 1.7%. Across the region Taiwan Weighted index closed at a two-year high of 0.7% on strong tourism and construction shares, boosted by expectations of improved trade relations with China. Hong Kong’s Hang Seng rose 0.7% helped by tech stocks. South Korean Kospi rallied 1.6%, while China Shanghai Composite sharply dropped by 2%.