Europe on Rebound

Ivaylo
18 May, 2001
New York City

Volatility has been the password to recent days of trading. Markets often find it difficult to find their feet right off the start, but Thursday morning the session got to an extreme trading. Indices were quick to give ground by more than 1%. Investors were wary, following the U.S. data, denting an already jittery sentiment. However, markets bounced back later in the morning session to erase the losses.

[R]6:30AM European markets fight back an early retreat.[/R]
The FTSE 100 gained 0.5 %, Xetra Dax traded in Frankfurt 0.5 % higher and the CAC-40 in Paris rose 0.4 %. On the corporate front, Societe Generale topped expectations, up 0.7%, on record-breaking first-quarter net earnings, while Air France beat the estimate only just, its stocks remained flat. Arcelor was among the decliners, shedding 2.6% in the wake of the takeover bid from Mittal Steel, which also fell 3.6%. Alstom lost 0.3% despite ING lifting its price target, after it reversed to profit. Man AG dropped 1.2% while Sandvik’s stocks advanced 1.5%.

Light crude oil was trading 14 cents down at $68.55 a barrel by 0742 GMT, continuing yesterday’s 84-cent loss. London Brent gained 3 cents to $69.07. Gold declined in early trade to $687.50 an ounce, down from $696.70, along with silver which also lost ground to$13.10 an ounce, down from $13.30 an ounce. The dollar fell against the euro. The euro bought $1.2792, up from $1.2741 late Wednesday. The British pound traded at US$1.8880, up from US$1.8816 and the yen was slightly stronger. The dollar traded at 110.65 Japanese yen, down from 110.96 yen.

[R]5:00 AM Gold fails to meet price expectations.[/R]
The most-traded June gold finished $1.10 lower at $691.80 a troy ounce after hitting an earlier session high of $712.50. The rebound in early trading came after a rise was reported in U.S. inflation. Silver dashed to a trading high of $13.74 an ounce but ended down 30 cents at $13.240 an ounce. July platinum closed $13.50 higher at $1,316.40 an ounce as did palladium which also settled $6.10 up on the day at $383.10 an ounce. Copper finished down, losing 17.05 cents end at $3.6715 per pound.

June crude oil shed 84 cents to settle at $68.69 a barrel and June gasoline fell 5.10 cents to finish at $1.9751 a gallon. July Arabica coffee closed 1.2 cent down at $1.0140 a pound and raw sugar in foreign ports ended down 0.10 cent at 16.93 cents a pound.