LONDON: European stocks were mixed yesterday as traders balanced political progress in Italy with disappointing earnings and housing data from the US.
On the the foreign exchange markets the dollar dominated sentiment as it spiked close to the 100 yen mark after the G20 cautiously endorsed the Bank of Japan’s huge stimulus measures despite wariness from emerging countries.
At close, London’s FTSE 100 index of leading companies was 0.09 percent lower at 6,280.62 points, in Paris the CAC 40 was flat at 3,652.13 points, while in Frankfurt the DAX 30 gained 0.24 percent to 7,478.11 points. The best performing European market was Italy’s FTSE MIB index, which jumped 1.57 percent to 16,007.10 points on investor relief after the surprise re-election of President Giorgio Napolitano over the weekend.
US stocks were also mixed with off the mark earnings from Caterpillar weighing on sentiment. In midday trading, the Dow Jones Industrial Average fell 0.33 percent, the broad-based S&P 500 added 0.07 percent, and the tech-rich Nasdaq Composite Index climbed 0.57 percent. The National Association of Realtors meanwhile reported that US existing-home sales declined in March by 0.6 percent from February.
In foreign exchange activity, the dollar spiked to 99.90 yen in Asian trading hours, reaching the highest level since April 11. It later stood at 99.32 yen in London deals, up from 99.52 yen late in New York on Friday. The dollar has not breached the key 100-yen barrier since April 2009.
Meanwhile, the euro edged down to $1.3048 from $1.3049 late on Friday. On the London Bullion Market, gold climbed to $1,424.50 an ounce from $1,405.50.
Asian markets mostly climbed, with Tokyo surging in value on the back of the falling yen, which boosts exporters. Tokyo jumped 1.89 percent, while Seoul was up 1.03 percent, Sydney rose 0.70 percent and Hong Kong added 0.14 percent. Chinese stocks dipped 0.11 percent. AFP
