Bourses shrug off ECB rate hold; techs, telecoms still out of favor.
Published:
6 January 2000 y., Thursday
European stock markets fell back toward session lows Wednesday as investors shrugged off the decision to leave euro-zone interest rates on hold and focused on the outlook for higher global rates. The European Central Bank (ECB) left its key refinancing rate unchanged at 3 percent at its monthly meeting in Frankfurt.
The FTSE 100 was 1.6 percent lower at 6,556.80 shortly before the start of trading in New York while the Xetra Dax in Frankfurt was down 1.4 percent at 6,497.42. Both markets lost 4 percent Tuesday.
The CAC 40 in Paris remained the weakest of the major markets, off 2.7 percent at 5,520.37, while the SMI in Zurich was just 0.6 percent lower at 7,225.80. The OMX index in Stockholm was the weakest bourse, down 4.4 percent on the back of a 6.6 percent slide by market heavyweight Ericsson.
The FTSE Eurotop 300, a pan-European gauge that serves as a guide to the overall regional mood, was almost 1.5 percent lower. Its technology stocks lost 8 percent and telecom shares slipped 4 percent, with only metals and mining companies gaining ground In currency markets, the euro gained a cent to reach a session high of $1.0402 in morning trade, helped by dollar weakness and a larger-than-expected drop in Germany’s December unemployment count. The currency traded as high as $1.0404 before giving ground. The single currency lost a little ground ahead of the ECB announcement but recovered to trade around $1.0385 ahead of the U.S. market open. Vodafone AirTouch (VOD) was by far the most heavily traded stock in London, off 2.5 percent as investors continued to exit the highly rated telecom sector.
The shares also were hit by reports that German takeover target Mannesmann (FMMN) would require a large cash element before considering any offer.
Financial and technology shares also faced the brunt of selling in London, with the latter retreating from a strong year-end performance. Semiconductor designer ARM Holdings (ARM) fell almost 9 percent and computer services firm Logica (LOG) down 7.2 percent.
Copying, publishing, announcing any information from the News.lt portal without written permission of News.lt editorial office is prohibited.
The most popular articles
“Banking Market in the Baltics 2009-2011, CEE Banking Brief” report recently presented by Intelace Research states that, despite the current economic recession, Estonia, Latvia and Lithuania are still among the most advanced banking markets in Central and Eastern Europe (CEE).
more »
According to the unaudited data for three quarters 2009, AB Bank SNORAS earned LTL 4.1 million profit. Although the inter-banking market of the country fixed the banks’ asset decrease (- 4.6 per cent) since the beginning of the year, the assets of Bank SNORAS grew by LTL 249.3 million and were by 4 per cent higher than at the beginning of 2009.
more »
Taking into account changes on domestic money markets AB DnB NORD Bankas, a member of international financial group shall change individual and corporate time deposit rates from November 5.
more »
FL Technics, the leading aircraft maintenance, repair and overhaul (MRO) provider in Eastern Europe, has signed contracts with Air Italy and Air Slovakia for Boeing 737-300 aircraft base maintenance in Lithuania.
more »
Thales UK’s headquarters site in Weybridge has recently held a Halloween charity coffee morning, raising more than £280 for Marie Curie Cancer Care.
more »
New SaaS-Based Vulnerability-Scanning Solution Is Latest Addition to Company’s Application Security Program.
more »
Since 31 October 2009, only LTL 0.99 fee for accepting payments will be applied to clients while making payments for various services (utility fees, communication services, etc.) in all subdivisions of Bank SNORAS.
more »
AB DnB NORD Bankas, the country‘s leader in investment products market, offers a new possibility for the clients to make repurchase deals (repo deals) in the bank’s newly installed on-line trading platform.
more »
The benefits of the integration of eastern Europe’s financial systems into the world economy outweigh the costs that have been highlighted during the global economic crisis, the EBRD has concluded in a new report.
more »
On 22 October 2009, following the favourable opinion expressed in September by the Committee for Fisheries and Aquaculture, the Commission adopted a Regulation establishing the implementing rules for the 2008 Regulation to prevent, deter and eliminate illegal, unreported and unregulated (IUU) fishing.
more »