European stocks extend losses

GMT 17:54 2015 Tuesday ,10 November

Arab Today, arab today European stocks extend losses

Frankfurt's DAX 30 lost 0.4%
Hong Kong - AFP

European stock markets fell for a second day running Tuesday as more weak Chinese data added to concerns about a looming US rate hike.

China's consumer price index reading -- the weakest since May -- comes days after Beijing data showed a sharp fall in imports and exports, adding to worries about the growth slowdown in the world's second largest economy.

Officials said prices rose 1.3 percent last month, down from 1.6 percent year-on-year in September.

"A key feature of global economic developments since the 2007 crisis has been the absence of inflation in the major economies," VTB Capital economist Neil MacKinnon said Tuesday.

"This reflects a number of factors, but can mostly be attributed to weak global demand and excess supply."

In late morning deals, London's benchmark FTSE 100 index fell 0.3 percent, Frankfurt's DAX 30 lost 0.4 percent and the CAC 40 in Paris shed 0.3 percent compared with Monday's close.

Traders are meanwhile betting on the US central bank tightening monetary policy in December despite broad weakness across the global economy.

"If the Fed is going for a rate hike in December many investors will now be cautious about buying into equities," ADS Securities market strategist Nour Al-Hammoury.

"Yesterday, European and US markets reacted to the increase chance of the hike, all falling by around 1.0 percent."

Increased prospects of a US rate hike, following much better-than-expected US jobs data on Friday, has meanwhile boosted the dollar's attractiveness that saw it reach six-month highs against the euro on Friday.

In the eurozone's second biggest economy France, economy minister said his country's economy is "lacklustre" and will probably remain so in 2016.

"There is a worldwide demand problem today and there is only a single engine left running", the US economy, Emmanuel Macron told Europe 1 radio.

"Any good news will not come from abroad," he said.

Macron said France needed to accelerate economic reforms and he called for a "much stronger investment policy in Europe" to rekindle growth on the continent.

On the corporate front Tuesday, shares in Vodafone rose 4.7 percent to 224.60 pence in London after the British mobile phone giant announced a rise in quarterly revenues, boosting the company's fortunes as its rivals prepare for mega tie-ups.

Underlying revenues rose 1.2 percent in the three months to September 30, above analyst expectations.

"Our customers are benefiting from the significant investments we are making in high speed mobile and fixed networks, as evidenced by the huge growth in demand for data and the increased loyalty to Vodafone services," said chief executive Vittorio Colao.

In Britain, the company's largest rivals are joining forces -- O2 with Three, while BT Group is in the process of buying EE in the face of fierce competition.

Key figures around 1100 GMT

London - FTSE 100: DOWN 0.3 percent at 6,276.49 points

Frankfurt - DAX 30: DOWN 0.4 percent at 10,774.28

Paris - CAC 40: DOWN 0.3 percent at 4,898.73

Tokyo - Nikkei 225: UP 0.2 percent at 19,525.87 (close)

EURO STOXX 50: DOWN 0.3 percent at 3,409.28

Euro/dollar: DOWN to $1.0740 from $1.0748 in late US trade Monday


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