Tech Stocks Weigh On Europe

Ivaylo
07 Jul, 2006
New York City

Investors, also, nervously awaited US employment data for further clues on the likely direction of future US monetary policy. The airline sector in Europe provided some upside after a number of carriers reported June passenger numbers. The U.K. FTSE 100 index lost 0.4%, the German DAX Xetra 30 index decreased 0.5% and the French CAC-40 index slipped 0.5%.

[R]6:15AM European stocks trade lower due to tech shares and U.S. payrolls report.[/R]
European markets traded lower in mid-morning session. The U.K. FTSE 100 index lost 0.4% at 5,868, the German DAX Xetra 30 index decreased 0.5% at 5,666 and the French CAC-40 index slipped 0.5% at 4,940. Chip makers Infineon Technologies lost 0.6% and STMicroelectronics weakened 1.7% after U.S. company Advanced Micro Devices Inc. late Thursday cut its second-quarter revenue guidance after posting lower sales of entry-level and mainstream mobile and desktop processors. Software maker Business Objects fell more than 27% in Paris after it revised its second-quarter earnings and revenue guidance lower after posting lower-than-expected license revenue. The airline sector provided some respite, as budget airline operator easyJet advanced 7.2% following its statement that it carried 15.6% more passengers in June than a year ago. The company also raised its profit growth guidance for the year. Also in the sector, Ryanair gained 2.3% and Air France-KLM increased 0.5% after it said that passenger numbers advanced 5.9% to 6.6 million in June.

Oil prices dropped below $75 a barrel Friday after a U.S. weekly petroleum supply snapshot showed an unexpected rise in domestic gasoline stocks. Light, sweet crude oil for August delivery shed 34 cents to $74.80 a barrel. Gold opened Friday at a bid price of $631.10 a troy ounce, up from $629.30 late Thursday. The euro was unchanged against the U.S. dollar on Friday after the European Central Bank''s president promised strict measures to curb inflation. The European currency was at $1.2774 in morning trading, unchanged from its level the night before in New York. The British pound gained after the Bank of England kept its own interest rate unchanged for the 11th consecutive month, rising to $1.8377 from $1.8367 the night before. The dollar also slipped against the Japanese currency, dropping to 115.01 yen from 115.15 yen.

[R]5:00AM Gold and silver advance on dollar and geopolitical tensions.[/R]
August gold ended up $6.60 to $636.30 a troy ounce on the NYME. It reached $637, its strongest level since June 6. September silver settled up 17 cents to $11.585 an ounce and reached $11.64, its most muscular level since June 8. October platinum finished with a gain of $1 to $1,249.60 an ounce, while September palladium added $3.15 to $330.85 an ounce. September copper ended up 21.30 cents at $3.6170 per pound.

The August crude oil contract closed down 5 cents at $75.14 a barrel after falling as low as $74.30 a barrel. August gasoline settled 2.10 cents lower at $2.2590 a gallon. August heating oil closed down 0.10 cent at $2.0616 a gallon. On the New York Board of Trade, July Arabica coffee futures settled down 0.55 cent at $1.0130 a pound, while September slipped 0.40 cent to $1.0305 a pound. Futures on raw sugar in foreign ports for October finished up 0.14 cent at 17.16 cents a pound while March advanced 0.14 cent to 17.46 cents a pound.