European Markets Advance, Resource Heavy FTSE 100 Lags

Lucy Stoeva
29 Dec, 2015
New York City

European markets advanced on Tuesday in light trading. Anglo American sold its 83.3% stake in Australia-based Dartbrook Coal Mine. Deutsche Bank sold its 20% in China-based Hua Xia Bank for

[R]4:00 PM Frankfurt – European markets advanced on Tuesday in light trading. Anglo American sold its 83.3% stake in Australia-based Dartbrook Coal Mine. Deutsche Bank sold its 20% in China-based Hua Xia Bank for €3.7 billion.[/R]

European markets gained ground on Tuesday, led by the banking sector, but trading volume was light in the holiday shortened week.

In the U.K., the advance was limited by losses in the mining sector, which continued to decline on the falling global demand.

In London trading, FTSE 100 index increased 24.38 or 0.4% to 6,278.87 and in Frankfurt the DAX index advanced 155.49 or 1.5% to 10,810.36.

In Paris, CAC 40 index jumped 62.07 or 1.3% to 4,679.91.

Anglo American Plc plunged 6.2% to 307.65 pence after the resources miner agreed to sell its 83.33% stake in Australia-based Dartbrook Coal Mine near Aberdeen to Australian Pacific Coal for about $36 million in cash and royalty.

Deutsche Bank AG jumped 2.2% to €22.68 after the German investment bank agreed to sell its stake of 19.99% in China-based Hua Xia Bank to Chinese insurer PICC Property and Casualty Co Ltd for €3.7 billion.

The sale is part of the effort of Deutsche Bank to lower debt on its balance sheet.

Faron Pharmaceuticals Oy declined 5.7% to 250 pence after the Finland-based biopharmaceutical company, confirmed enrollment of first patient for phase 3 clinical trial of Traumakine, its acute respiratory distress syndrome treatment.

Prysmian gained 2.93% to €20.37 after the Italian cable specialist increased its stake in Oman Cables Industry to 51% from its stake of 34.78%.

The additional 16% stake will cost €100 million.

“We consider our investment in Oman Cables Industry of strategic importance to our presence in the Middle East region” said Prysmian’s CEO, Valerio Battista.

ZinCOx Resources Plc tumbled 42.6% to 0.99 pence after the company failed to raise $5 million that would have allowed it to reschedule the debt of $57 million it owes to Korea Zinc.

As a result, the zinc concentrate producer will have to hand over 90% stake of its metals recycling plant in Korea to its lender, Korea Zinc.