Commodities Weigh in Europe

Elena
18 Apr, 2006
Frankfurt

European stocks traded mixed at mid-day after the long holiday weekend. Stocks were dragged by surging commodities prices and disappointing earnings from Philips Electronics. The German DAX 30 dropped 0.6%, the French CAC 40 edged down 0.2%, while London FTSE 100 climbed 0.4%, supported by gains in oil and mining companies.

[R]8:15AM European averages traded mixed at mid-day.[/R]
European markets traded mixed at mid-day, resuming trading after the four-day break. Market sentiment was hurt by surging commodities prices and disappointing first-quarter earnings report from Philips Electronics which declined after reporting quarterly profit at the low end of forecasts. Sharply higher oil prices sparked investors’ worries ahead of the earnings season. However, stocks in the U.K. advanced, lifted by mining and oil companies like Total, BP, and Royal Dutch Shell which advanced more than 1%. The German DAX 30 dropped 0.6%, the French CAC 40 edged down 0.2%, while London FTSE 100 climbed 0.4%.


[R]7:45AM Asian markets closed higher, led by the Nikkei.[/R]
Asian-Pacific benchmarks advanced across the region, led by the Nikkei which climbed 1.4% to 17,232.86, boosted by strong financial and brokerage stocks, as well as mining and energy shares. Financial stocks stood out among gainers with Mizuho Financial Group rising 2.9% and Mitsubishi UFJ Group gaining 1.6%. Shares of oil and mining shares advanced, benefiting from surging commodities prices with Nippon Mining Holding moving higher by 5.8%. Hong Kong’s Hang Seng was sharply higher at 0.9%, lifted by major China-based companies and speculations that mainland investors will be given access to securities outside their home town. Among gaining stocks, China Mobile rose 3.4%, CNOOC gained 3.2%, and Synopec climbed 4.3%. Australia’s All Ordinaries was another sharp advancer, rising 1.3% on mining companies like BHP Billiton, up 2.3% and Santos, up 2.6%. South Korea’s Kospi added 0.3%, supported by Samsung Electronic.