Sun, Sep 12, 2004 - Page 10 News List

European markets get rise out of US economic reports

SHOT IN THE ARM A narrowing in the US' July trade deficit and lower wholesale prices sweetened the market for European investors

AFP , LONDON

European stock markets got a boost from US economic data on Friday showing a 0.1 percent fall in last month's wholesale prices and a narrowing in the July trade deficit.

The London FTSE 100 index edged up 0.15 percent to 4,545 while in Paris the CAC 40 added 0.70 percent to end the week at 3,677.61. In Frankfurt the DAX jumped 0.90 percent to finish at 3,886.03.

The DJ Euro STOXX 50 index of leading eurozone shares gained 0.55 percent to reach 2,745.86.

On the currency market the dollar fell sharply against the euro as investors saw the US wholesale prices as suggesting that any hike in US interest rates by the Federal Reserve will be limited.

The single European currency in late-day trade was at US$1.2288 against US$1.2211 late Thursday in New York.

In Asia, Tokyo's benchmark NIKKEI-225 index closed down 0.79 percent at 11,083.23 points after a surprise downward revision to GDP growth for the April-June quarter, dealers said.

The annualized growth rate for the quarter was revised down to 1.3 percent from an initial reading of 1.7 percent, in sharp contrast to the consensus forecast for an upward revision to 2.9 percent.

In London on Friday, sentiment was troubled by fears that US health authorities would not approve Exanta, a new anticoagulant developed by AstraZeneca. Shares in the group shed 2.39 percent to end the day at £24.50.

Mobile phone operator Vodafone gained 1.15 percent to £1.3225 despite news that Merrill Lynch had withdrawn it from its list of preferred European stocks.

Oil companies were mixed. BP rose 0.64 percent to £5.0925 while Shell dipped 0.36 percent to close at £4.145. In Paris Total took advantage of a rebound in oil prices to add 0.99 percent to end the session at £1.6390.

In the tech sector STMicroelectronics gained 4.01 percent to £0.1454, still supported by better-than-expected prospects reported on Thursday at mobile phone giant Nokia.

In Frankfurt the auto sector was well-supported. Volkswagen advanced 1.27 percent to £0.3258 after announcing that it would be marketing an economy model in Germany.

Elsewhere share prices rose 0.15 percent in Brussels, 0.21 percent to 8,055.9 in Madrid, 0.42 percent to 27,728 in Milan and 0.56 percent to 329.72 in Amsterdam.

The Swiss Market Index of London-quoted issues gained 0.26 percent to finish at 5,536.8.

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