Sun, Jul 22, 2007 - Page 10 News List

Lackluster results, strong currencies hamper EU stocks

AFP , LONDON

European stocks posted heavy losses on Friday on the coattails of Wall Street amid disappointing corporate results and a new record high for the euro.

In London the FTSE 100 index lost 0.83 percent to close at 6,585.20 points, while in Paris the CAC 40 lost 1.79 percent to finish at 5,957.16 and in Frankfurt the DAX dipped 1.46 percent to end the day at 7,874.85.

The DJ Euro STOXX 50 index of top eurozone shares decreased by 1.71 percent to 4,445.40.

The rising euro and British pound are seen as bad news for European exporters, whose products become less competitive in international markets.

In London mining stocks dipped with the worlds' biggest miner BHP Billiton losing 0.93 percent to ?14.85 after an Australian newspaper said the group would not make an offer for US aluminum company Alcoa.

There had been speculation that BHP Billiton was considering a US$50 billion takeover of Alcoa, which has become a potential takeover target after failing with a bid to buy Canadian rival Alcan.

The report said BHP Billiton planned to make an offer of US$45 billion for US copper company Freeport McMoRan.

The FTSE's highest riser was Friends Provident. The financial services group jumped 4.25 percent to ?1.864 on talk of takeover interest, dealers said.

Elsewhere in Europe, in Madrid the IBEX 35 dropped 1.82 percent to 14,930.40 points, in Brussels the BEL 20 dipped 0.61 percent to 4,579.36, in Amsterdam the AEX lost 0.93 percent to 555.02 points, while the Swiss SMI dropped 0.91 percent to 9,105.46 points. In Milan the SP/MIB lost 1.48 percent to 41,496 points.

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