Print

Mail

wiki links

Technology shares boost European markets

European stocks closed higher on Thursday, as strength in the US technology sector boosted sentiment while French retailer Carrefour posted strong quarterly sales figures.

Markets across Europe were closed on Friday for the Easter holidays, and will reopen on Tuesday.

London's blue-chip FTSE 100 Index gained 0.5 percent to close at 6,029. The German DAX Xetra 30 climbed 0.3 percent to 5,918, despite being weighed down by automaker DaimlerChrysler. In Paris, the CAC-40 Index climbed 0.3 percent to close at 5,102.

The pan-European Dow Jones STOXX 600 Index rose 0.4 percent to close at 334.36 points.

Stocks came under pressure after yields on the 10-year US Treasury bond edged past 5 percent. The yield on the 10-year German bund rose as well.

"These bond markets seem determined to convince everyone that interest rates are going a lot higher than expected," said Mike Lenhoff at Brewin Dolphin Stockbrokers.

He said that the move is negative for the equity markets because, the higher bond yields go, the more it begins to affect or impair valuations for equity markets.

"So it means that investors are very unlikely to want to push the market up and may even start taking some profits," he said.

On Wall Street, US stocks turned higher as a rise in technology issues provided a lift.

Among Europe's big movers, Carrefour rose 3.6 percent after the world's second-biggest retailer reported first-quarter sales growth of 6 percent on year. Growth totaled 8.3 percent after adjusting for currency-exchange rates.

Ericsson shares traded slightly higher after its joint venture mobile-phone maker Sony Ericsson said first-quarter profit more than tripled, helped by demand for high-end handsets featuring Walkman music players.

Sony Ericsson also said it paid a 247 million euro (US$298.7 million dividend to its two owners.
This story has been viewed 1336 times.