Europe Lower On Credit Agricole Deal

Ivaylo
05 Jul, 2006
New York City

Apart from Credit Agricole statement, the European losses came after Asian markets followed Japan downward as a series of missile tests by nearby North Korea jarred market sentiment. The U.K. FTSE 100 index shed 0.4%, the German DAX Xetra 30 index slipped 0.5% and the French CAC-40 index dropped 0.5%.

[R]6:30AM Europe fell by mid-morning on bank statement and North Korea scare.[/R]
European markets traded lower by mid-morning on Wednesday. The U.K. FTSE 100 index shed 0.4% at 5,860, the German DAX Xetra 30 index slipped 0.5% at 5,700 and the French CAC-40 index dropped 0.5% at 4,960. Among the decliners were British bank Alliance & Leicester losing 6.3% in London in the wake of France''s Credit Agricole announcement that it decided not to make an offer for Alliance & Leicester. Agricole slipped 0.3%. Tire makers, Continental and Michelin, each lost more than 1.5%, after Japan''s Sumitomo Rubber warned on 2006 profitability levels following higher raw material costs. Advancers included Irish building materials company CRH gaining 1.2% after it said that, due to an improved performance in each of its business segments. France''s Scor also advanced 4% after agreeing to buy German reinsurer Revios for 605 million euros ($775 million) from Globale Re.

Light sweet crude oil was traded over $73 a barrel, down 51 cents at $73.42. Gold was fixed in London at a recommended price of $625.75 bid per troy ounce at midmorning, up from $621.80 late Tuesday. Silver traded in London at $11.28 per troy ounce, up from $11.24. The dollar was up against the European currency. The euro traded at $1.2762, down from $1.2791 late Tuesday in London. The British pound traded at $1.8439, down from $1.8446. The dollar bought 115.04 Japanese yen, up from 114.58.