European equities drop in downbeat start to week

GMT 19:21 2014 Monday ,07 July

Arab Today, arab today European equities drop in downbeat start to week

Stock brokers work at the Frankfurt stock
London - AFP

Key European stock markets sank on Monday, getting the week off to a weak start as investors booked profits and frowned at poor German economic data, dealers said.
London's benchmark FTSE 100 index fell by 0.62 percent to close at 6,823.51 points.
The Paris CAC 40 gave up 1.41 percent to 4,405.76 points and Frankfurt's DAX 30 lost 1.03 percent to 9,906.07 compared with Friday's close.
On Wall Street, shares were also hit by profit taking and poor German output data as traders returned from a long Independence Day weekend.
In early deals, the Dow Jones Industrial Average was off by 0.37 percent at 17,004.90 points, while the broad-based S&P 500 lost 0.33 percent to 1,978.89.
The Nasdaq Composite Index, which is rich in technology shares, declined 0.34 percent to 4,470.82 points.
"The market is low on fuel and cannot see very far ahead. It has been a bit hesitant for several weeks moreover," noted Andrea Tueni, an analyst at Saxo Banque in Paris.
"The central banks have underpinned the market, but there are not enough positive elements to keep it rising," he added.
European equities gained ground last week, with Germany's DAX hitting a record high on surprisingly strong US jobs data and the European Central Bank's decision to keep its monetary policy loose.
- Downbeat German data -
On Monday, however, official data showed that German industrial output had contracted in May after being affected by the number of public holidays.
Official data from the eurozone's largest economy showed industrial production declined by 1.8 percent, after slipping by 0.3 percent in April.
Activity was undermined by the number of public holidays and bridging days, the ministry explained.
"Data... has disappointed markets with German industrial output falling 1.8 percent between April and May, significantly below market expectations of no change," commented broker Markus Huber at Peregrine & Black.
"This reading from Germany is in line with the poor data reports out of the European powerhouse in recent weeks in areas such as unemployment data, business sentiment and factory orders."
In company news, stock exchange operator Deutsche Boerse fell in Frankfurt after receiving a broker downgrade from Credit Suisse.
The group's share price slid 2.89 percent to 55.02 euros.
In London, SABMiller's shares dropped 1.25 percent to 3,355,00 pence after the Britain-based brewer announced it will seek to sell its $1.09-billion (800-million-euro) stake in South African leisure division Tsogo Sun.
SABMiller, which is listed in London and Johannesburg, said in a statement that after a strategic review it will dispose of its 39.6-percent stake in Tsogo Sun via a share placing and buyback.
On foreign exchange markets, the European single currency sank at one point to 79.15 British pence, a level last seen in September 2012.
In afternoon deals, the euro stood at 79.43 pence, up from 79.22 pence on Friday.
The pound meanwhile declined to $1.7128, from $1.7160 late on Friday, when it struck a six-year high point.
The euro also gained to $1.3604 from $1.3595 late on Friday in New York.
On the London Bullion Market, the price of gold weakened to $1,313 an ounce from $1,319.25 on Friday.

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