European markets in downbeat start to week

GMT 14:29 2014 Monday ,20 October

Arab Today, arab today European markets in downbeat start to week

European stock markets
London - AFP

European stock markets slid on Monday as traders took profits and eyed global economic worries on the eve of crucial Chinese growth figures, dealers said.
In midday trading, London's benchmark FTSE 100 index of top companies fell 0.70 percent to 6,266.27 points compared with Friday's closing level.
Frankfurt's DAX 30 index dipped 0.88 percent to 8,773.00 points and the CAC 40 in Paris reversed 0.76 percent to 4,002.46.
The euro meanwhile edged higher against the US dollar.
"It looks like the volatility in equity markets may not yet be over," said analyst James Hughes at trading firm Alpari.
"US and European markets staged an impressive comeback on Friday, managing to help lead a recovery to the correction.
"However we cannot yet rest easy and get back into the long-term buying trend, with a whole host of economic data due for release this week."
- Chinese GDP in focus -
Investors will pay particularly close attention to Chinese third-quarter gross domestic product (GDP) data on Tuesday.
Markets were rocked by near panic last week as traders worried over the economic outlook in China and the United States, while the eurozone faced fears of a possible recession.
European equities had rebounded on Friday as investors snapped up bargains, ending a roller-coaster week marked by alarm over global growth, a reemergence of eurozone tensions and the spreading Ebola virus.
The global selloff was sparked on Tuesday by official data showing US retail sales and producer prices both fell in September.
However, sentiment improved on Thursday on news of rebounding US industrial production and a drop in weekly US jobless claims to a 14-year low.
"European shares are starting out the new trading week little changed to slightly lower this morning with shares seeing a bit of profit taking early on," said analyst Markus Huber at brokerage Peregrine & Black on Monday.
"Overall not much has changed and the main topic remains economic growth concerns especially within the eurozone, however many consider last week’s sharp market reaction to mediocre US economic data somewhat overdone."
In Paris on Monday, the biggest faller was French digital security company Gemalto. Its share price dived 7.17 percent to 54.9 euros on the back of negative broker comment.
On the upside, advertising group Havas jumped 6.78 percent to 6.093 euros after its main shareholder, French conglomerate Bollore, announced a takeover bid.
Shares in Bollore however fell by 7.09 percent to 352 euros.
In Lisbon, shares in Portugal Telecom plunged 20.92 percent to a record low of 0.96 euros on doubts about prospects for its merger with Brazilian operator Oi.
In Athens, the main Athex index, which had fallen heavily last week, was up 1.91 percent, and the yield on Greek 10-year bonds continued to ease, to 7.996 percent.
- Asia, US stocks rally -
Asian stocks rallied on Monday following a rise in New York at the end of last week, with Tokyo surging thanks also to a weaker yen which boosts exporters.
While the gains will come as some relief after the ups and downs of last week, traders are nervously watching the release of Chinese economic growth data.
Tokyo stocks, which ended last week at a five-month low, raced 3.98 percent higher in the biggest one-day points gain since June 2013, adding 578.72 points to finish at 15,111.23.
The market in Sydney jumped 0.90 percent, Shanghai rose 0.66 percent and Hong Kong increased 0.20 percent.
Investors took their lead from Wall Street, where the three main indexes saw healthy advances Friday on bargain-buying and following upbeat earnings reports from General Electric and Morgan Stanley.
The Dow added 1.63 percent, the S&P 500 jumped 1.29 percent and the Nasdaq gained 0.97 percent.
In foreign exchange on Monday, the euro firmed to $1.2766, compared with $1.2759 late in New York on Friday.
The European single currency eased to 79.14 British pence from 79.27 pence. The pound was worth $1.6127, up from $1.6091 on Thursday.
On the London Bullion Market, the price of gold rose to $1,241 an ounce from $1,234.25.


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