European Markets Steady, Pound at 6-Month Low

Barry Randall
28 Jan, 2013
New York City

European markets steadied after a six-week rally that lifted indexes to multi-year highs. The UK pound declined to a six-month low against the dollar and fell to a 14-month low against the euro after weak GDP data.

[R]5:00 PM Frankfurt – European markets steadied after a six-week rally that lifted indexes to multi-year highs. The UK pound declined to a six-month low against the dollar and fell to a 14-month low against the euro after weak GDP data.[/R]

European markets were generally quite after the indexes in the region closed at a new multi-year high ahead of earnings season this week.

The benchmark FTSE index in London gained 10 or 0.2% to 6,294 and in Frankfurt DAX 30 index decreased 25.3 or 0.3% to 7,833. In Paris the CAC 40 index increased 0.1% or 2.7 to 3,781.

Market indexes in 11 of 17 nations in the region closed higher.

In currency markets, UK pound declined to six-month low against the dollar to $1.57 and 14-month against the euro to 85 pence after economy in the December quarter declined at a faster than estimated pace of 0.3%.

Stocks in Review

ASML Holding NV increased 2.8% to 56.20 euros after comments from Citigroup suggested that capital spending concerns were easing and revenues from services were increasing.

Banks in general closed higher in European markets. HSBC Holdings increased 1% and Barclays gained 1.7%. BNP Paribas increased 2% and Credit Agricole gained 2.4%.

Northland Resources SA plunged 45% to 63 kroner cents after the iron ore miner said it needs to raise $375 million to meet its revised cost estimate.

SBM Offshore increased 3% to 12 euros after the maker of oil platforms’ stock was higher by Morgan Stanley.

TNT Express NV increased 3.3% to 5.65 euros after UBS AG lifted its outlook on the stock and speculated new management will act to sell its operations its money losing operations in Brazil and China.

Tate & Lyle declined 1% after Investec Securities its view on the company ahead of quarterly earnings on Friday.