Europe Weakens on Oil

Elena
28 Apr, 2006
Frankfurt

European stock markets traded lower at mid-day, dragged down by weakness in oil companies as crude oil prices further declined, with the Italian Eni and the French Total posting the steepest drop among oil majors.The German DAX 30 slipped 0.8%, the French CAC 40 lost 0.4% and London FTSE 100 fell 0.3%.

[R]8:15AM European averages dropped for a fourth day in a row.[/R]
European markets posted losses at mid-day for a fourth consecutive session. Averages were dragged down by weakness in oil companies as crude oil prices further declined to reach levels above $70 a barrel, sharply down from recent highs of $75. The Italian Eni and the French Total posted the steepest drop among oil majors. In currency markets the euro gained vs. the dollar on economic data. The German DAX 30 slipped 0.8%, dragged by 4.2% loss for car maker Volkswagen on lower-than-expected quarterly earnings and 2.4% decline for Siemens due to a brokerage downgrade. The French CAC 40 lost 0.4% and London FTSE 100 fell 0.3%.


[R]7.00AM Asian Markets finished lower.[/R]
Nikkei, Japan’s benchmark, ended down 208.31 points, or 1.2% to 16,906.23. The low came in the wake of China’s decision to tighten its grip on its soaring money supply growth, for fears of a potential investment bubble. Japan’s benchmark was also influenced by a poor Sony performance, shedding 5.8% after reporting a first-quarter loss and an uncertain outlook for the fiscal year. Other blue chips faired better, Canon advanced 2.3%, reporting 18.7% quarterly growth. Pioneer rose 5.3%, despite announcing $143 million operating loss on restructuring issues. Kospi, Seoul’s benchmark shed 2.5%, led by government data and Hyundai Motors legal problems. Hong Kong’ Hang Seng also ended 0.5% lower or 16,661.30 making it 1.5% for the week.