Europe Slips on Thin Trading

Ivaylo
23 Nov, 2006
New York City

With the closure of US and Tokyo markets for public holidays, European stocks declined for a second day. Earnings at Air France-KLM Group, the biggest airline in the region, and KBC Group NV, the second largest financial-services company in Belgium, also disappointed investors. By mid morning, the FTSE 100 in London lost 0.3%, Frankfurt

[R]6:30AM European stocks fall Thursday on thin trading and financials.[/R]
European markets were lower on Thursday. By mid morning, the FTSE 100 in London lost 0.3% to 6,143.2, Frankfurt’s Xetra Dax fell 0.1% to 6,472.23, the CAC 40 in Paris shed 0.2% to 5,442.74.

Advancers

Swisscom, the telecoms group, gained 1.9% after it said late on Wednesday it was in talks with the UK Vodafone to repurchase a 25% stake in Swisscom Mobile. Vodafone shares gained 1.1%.

Greek mobile group Cosmote meanwhile gained 0.7% after Greek market regulator approved the company mandatory public offer for the remaining shares it does not already own in Germanos, the phone retailer.

Decliners

KBC Group, the Belgian financial services company, fell 2.7% as concerns over lower fees and loan impairment charges overshadowed better-than-expected third-quarter profits.

French Credit Agricole fell 2.1%, advancing the previous session losses when it reported a continued slowdown in profit growth and weaker-than-expected third-quarter revenues.

Air France lost 6.8%, the biggest decline on the market. Net income for the quarter ended Sept. 30 gained 26% to 374 million euros ($484.8 million), excluding the gain from the sale of a stake in Amadeus Global Travel Distribution SA. That compares with the median estimate of 370 million euros of analysts, lagging a bit behind.

Oil and gold

Crude oil fell because U.S. oil supplies advanced to a five-month high and tankers started loading crude at the port of Valdez, Alaska, for the first time since Nov. 20 after the weather improved. Crude oil for January delivery fell as much as 35 cents, or 0.6%, to $58.89 a barrel in electronic trading on the NYME. The contract traded at $58.99 in early trading in London.

Gold for immediate delivery fell as much as $1.30, or 0.2 %, to $629.00 an ounce.

Currencies

The euro advanced to the highest against the dollar since June after a report showed business confidence in Germany, the largest economy in Europe, unexpectedly rose to a 15- year high this month. The euro gained to $1.2959 in early trading in London, from $1.2942 late yesterday in New York, when it reached $1.2957. The European currency traded at 150.79 yen, from 151.10. The dollar traded at 116.37 yen, from 116.74. Against the dollar, the British pound was at $1.9145 from $1.9139 late yesterday.

[R]5:00AM Platinum futures closed lower Wednesday, gold inches higher.[/R]
January platinum finished $65.10 lower to $1,154 an ounce. December palladium settled $2.35 down at $326 an ounce. December gold initially advanced to $635 a troy ounce but retreated to close up 30 cents at $629. December silver lost 4.5 cents to $13.04 an ounce, down from a high of $13.25 an ounce. Most-active December copper declined 0.45 cents at $3.1110 per pound.

The front-month January crude oil contract shed 93 cents to end at $59.24 a barrel. December heating oil edged lower 6.67 cents to close at $1.6665 a gallon. Unleaded gasoline settled down 4.39 cents at $1.5888 a gallon. December natural gas lost 27.0 cents to end at $7.718 a million British thermal units.

On the New York Board of Trade, December Arabica coffee futures closed 0.15 cents higher at $1.1555 a pound, with most-active March up 0.05 cent at $1.2015. Futures on raw sugar in foreign ports for March lost 0.01 cent to finish at 11.47 cents a pound.