European stocks mixed in listless trade
October 10, 2009
London - European stock exchanges turned in a mixed performance Friday in listless trade marked by profit-taking in some sectors and the absence of major economic news.
In London the FTSE 100 index inched up 0.14 percent to end the week at 5,161.87 while in Paris the CAC 40 fell 0.19 percent and closed at 3,799.61. The Frankfurt DAX slipped 0.08 percent to 5,711.88.
Elsewhere there were gains of 0.25 percent in Amsterdam, 0.19 percent in Brussels and 0.45 percent in Milan. There were declines of 0.60 percent in Madrid and 0.22 percent in Geneva.
In New York, share prices shook off a weak start Friday and the market kept momentum from this week's rally.
The Dow Jones Industrial Average was holding a gain of 0.37 percent at 9,823.45 at mid-day while the Nasdaq composite had climbed (0.46) percent to 2,133.73.
The market was digesting comments from US Fed Chairman Ben Bernanke late Thursday that interest rates may be lifted from the level of near zero when the US economic outlook has "improved sufficiently."
"There is nothing monumental about the chairman's statement," said Patrick O'Hare at Briefing.com, who added that the market paused to reflect on the impact of higher rates on the US dollar and commodities.
Because a weak dollar and rising commodities prices have been pushing stocks up, the latest comments prompted caution.
"Mr. Bernanke threw the dollar a bone with the remark and the uptick in the greenback is expected to weigh a bit on commodity-sensitive areas," O'Hare said.
But Fred Dickson at DA Davidson & Company said investors sitting with cash on the sidelines have been using the modest dips to buy more stocks.
"We continue to see small pullbacks followed by rallies on expanding volume, signaling equity buyers are still waiting on the sidelines to get on board the train," he said.
"Some of the recent rally can be attributed to global investors seeking to unload dollars for stocks and commodities."
There was little reaction to a report showing the US trade deficit narrowed for the first time in four months.
Although a lower trade gap would ordinarily be seen as positive news, analysts said it showed higher exports driven by a weak dollar and lower imports amid lackluster domestic demand.
In London mining issues fell victim to profit-taking, with Anglo American shedding 1.40 percent to end the week at 2,151.5 pence while Vedanta gave up 1.28 percent to finish at 2.162 pence.
Among the main losers in Paris was media group Vivendi, which fell 1.47 percent to 20.395 euros on investor fears it might boost its bid for the Brazilian group GVT, which is also coveted by Telefonica.
Steelmaking giant ArcelorMittal lost 1.13 percent to close at 25.45 euros on a lowered recommendation on the stock from Royal Bank of Scotland.
Earlier in Asia, Tokyo's benchmark Nikkei-225 index jumped 1.87 percent on Friday, ending above the key 10,000-points level for the first time in more than a week as hopes mounted of a recovery in corporate earnings.
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