Europe Pressured by Weak Dollar

Elena
24 Apr, 2006
Frankfurt

European markets declined at mid-day as weaker U.S. dollar put key auto and tech stocks under pressure. Dollar-sensitive shares were leading decliners with DaimlerChrysler and Philips Electronics moving lower.The German DAX 30 dropped 0.2%, the French CAC 40 slipped 0.4%, while London FTSE 100 edged down 0.04%.

[R]8:15AM European averages declined at mid-day.[/R]
European markets lost ground at mid-day as weaker U.S. dollar put key auto and tech stocks under pressure. Dollar-sensitive shares were leading decliners with automaker DaimlerChrysler and tech company Philips Electronics moving lower. The yen and euro surged after the world’s riches countries urged China to allow further strengthening of the yuan. However, 3.2% rise for Deutsche Telekom helped limit losses. The company gained after private-equity firm Blackstone agreed to make an investment in the telecom. The German DAX 30 dropped 0.2%, the French CAC 40 slipped 0.4%, while London FTSE 100 edged down 0.04%.


[R]7:45AM Asia declined. The Nikkei sharply dropped.[/R]
Asian-Pacific benchmarks finished broadly in the negative with the Nikkei leading regional decliners, making the biggest point drop for the year. The Japanese index plunged 2.8% to 16,941.40 as weaker dollar against the yen dragged export-related auto and electronics stocks. Honda Motor slipped 3.7%, Toyota Motor declined 2.8%, Sony dropped 2.8%, and Canon lost 2%. Banking and telecom shares also moved lower. Stocks lost ground as oil and yen surged, following the Washington meeting of the Group of Seven. The financial chiefs of the world’s largest economies issued a statement, expressing the need of greater flexibility in exchange rates. Across the region, South Korea’s Kospi slipped 1.4% after hitting a historic high Friday, Hong Kong’s Hang Seng dropped 1.2%, while Taiwan Weighted Index rose 0.5%, and Australia’s All Ordinaries gained 0.4% on strong mining stocks.