Traders work at their desks in front of the DAX board at the Frankfurt Stock Exchange yesterday.
LONDON: European stock markets closed yesterday with mixed results as investors balanced mostly gloomy eurozone economic data against growing hopes of an interest rate cut from the European Central Bank, dealers said.
London’s FTSE 100 index of top companies gave up 0.43 percent to 6,430.12 points, the Paris CAC 40 slid 0.31 percent to 3,856.75 and Madrid’s IBEX 35 slipped 0.38 percent to 8,419. On the upside, Frankfurt’s DAX 30 gained 0.51 percent to 7,913.71 points, boosted by resilient German labour market and consumer confidence figures.
The euro hit a two-week peak at $1.3186 before settling back to $1.3171, which was still a gain from $1.3097 late on Monday in New York. On secondary government debt markets, French 10-year bonds traded at one point at a record low yield of 1.695 percent, before edging back up to 1.709 percent in late trade.
On Wall Street, US stocks traded in positive territory for the most part in midday exchanges after a disappointing earnings report from Dow member Pfizer depressed the blue-chip index at the opening.
The Dow Jones Industrial Average remained off by a slight 0.03 percent at 14,813.68 however. The broad-based S&P 500 had edged up by 0.08 percent to 1,594.87, while the tech-rich Nasdaq Composite Index was 0.33 percent higher at 3,318.08.
As they mulled European data, investors awaited the outcome of the US Federal Reserve’s latest monetary policy meeting today.
In a heavy blow, data showed that Spain’s economy shrank 0.5 percent in the first quarter of 2013, as a job-destroying recession gripped the nation.
Back in London meanwhile, BP shares jumped 2.11 percent to 466.4 pence after the energy giant said net profits almost tripled in the first quarter of 2013.
In the bank sector, partly nationalised Lloyds Banking Group revealed that it returned to profit in the first quarter on the back of higher income, deep cost-cutting and lower charges to account for decreased values of assets. In reaction, Lloyds shares rallied 1.55 percent to 54.33 pence and rival state-rescued lender Royal Bank of Scotland added 4.18 percent to 306.3 pence.
Asian equities mostly rose following another record close on Wall Street the day before, while sentiment was also boosted by news that a new government had finally been formed in Italy after months of deadlock. Tokyo fell 0.17 percent however, while Seoul rose 1.20 percent, Sydney jumped 1.28 percent and Hong Kong added 0.69 percent. Shanghai was closed for a public holiday. AFP
