Mixed Start For Europe

Ivaylo
14 Jun, 2006
Frankfurt

Sentiment stayed delicate and investors were ready for further turbulence with key US inflation data due for release later in the trading. Mounting concern about iinflation and the outlook for interest rates has been one of the major factors that triggered volatility across all asset classes recently. In London, the FTSE 100 shed 0.2% while the German Xetra Dax inched 0.1% up but the French CAC 40 dropped 0.1%.

[R]6:15AM European stocks traded mixed in early session.[/R]
European shares were mixed in early trading. In London, the FTSE 100 dropped 9.5 points or 0.2% at 5,510.10, while the German Xetra Dax put up 3.1 points or 0.1% at 5,292.98. The French CAC 40 lost 5.2 points or 0.1% at 4,612.41. On the corporate front, EADS plummeted 29% after it announced delivery delays for the Airbus A380 superjumbo would cost ˆ2bn in 2007. Singapore Airlines expressed disappointment at the delays and added it was talking to EADS about possible compensation. BAE Systems plunged 5.7% on concerns that EADS might try to renegotiate the price it has agreed to pay the UK company to buy its interest in the project. The fight for control of Schering is about to reach a climax today with German rivals Bayer and Merck vying for control of the German healthcare group. The battle has become more hostile after Bayer sued Merck in a US court late on Tuesday, stating that it had not properly disclosed a purchase of 2.1 million shares, taking it stake to 21.8 million shares. Schering traded 1.3% higher.

Light, sweet crude oilfor July delivery advanced 34 cents to $68.90 a barrel. The contract dropped $1.80 to end at $68.56 a barrel on Tuesday. In London, July Brent crude futures advanced 29 cents to $67.21 per barrel on the ICE Futures exchange. Gold bullion opened Wednesday at a bid price of $576.60 a troy ounce, higher than $576.30 late Tuesday. The dollar lost slightly against the euro. The European currency bought $1.2588 in morning European trading, up a little from $1.2541 in New York late Tuesday. The British pound also gained to $1.8422 from $1.8335. The dollar slipped against the Japanese currency, dropping to 114.87 yen from 115.27 yen.

[R]5:00AM Gold and other precious metals fell across the markets.[/R]
August gold futures on NYME were down $42.30 an ounce to $569. July silver shed $1.445 an ounce to $9.62. The intraday low of $9.60 was the weakest level since March, down 37% from a high of $15.20 on May 11. July copper plunged 21.80 cents to $3.0105 per pound. Palladium dropped to $275 an ounce and closed near $272/277, against $311/316 previously. Platinum plunged to a six-week low at $1,120 an ounce before ending at $1,116/1,120, versus $1,168/1,172. The metal hit an all-time high of $1,338 last month.

Light sweet crude oil for July delivery dropped $1.80 to end at $68.56 a barrel, the lowest close since May 19. In London, July Brent crude futures fell by $2.01 to finish at $66.92 per barrel. Gasoline futures dropped by 7.25 cents Tuesday to end at $2.0518 a gallon