European markets drop on profit-taking; London gains


11/08/2016 05:33 AST

Most of the world’s main stock markets ran into profit-taking yesterday prompted by weak data, mixed earnings and a sliding dollar, but London hung on by a thread.

Frankfurt closed 0.4% down at 10,650.89 after “markets hit recent highs and the German index entered a bull market yesterday, rising 22% since February”, said Rebecca O’Keeffe, head of investment at broker Interactive Investor.

In Paris, CAC 40 lost 0.4% at 4,452.01, while London’s benchmark FTSE 100 gained 0.2% at 6,866.42 points yesterday.

Wall Street’s main Dow index was little changed at the opening in a mixed reaction to fashion brands Michael Kors, Ralph Lauren and Fossil reporting earnings, and then abruptly turned lower around mid-session.

But Disney stock worked some magic, rising after an early drop in reaction to third-quarter earnings bolstered by blockbuster films.

The DAX had shot higher Tuesday to close up 2.5%, as Germany’s trade surplus beat expectations to shrink only slightly in June after exports had returned to growth.

But dealers noted that low holiday season volumes meant that gains could unravel as quickly as they had materialised.

“Experience shows that any movement that is not underpinned by rising volumes or a catalyst has no staying power, so it’s best to remain cautious,” said Thierry Claude, a portfolio manager at Barclays Bourse in Paris.

France provided such a catalyst yesterday when industrial production in the eurozone’s second-largest economy dropped for a second straight month in June, alarming analysts who had been looking for a modest increase.

Output fell 0.8% in June, after dropping 0.5% in May, with oil refining posting the largest single decline after strikes in France’s oil industry.

“The broad-based decrease in industrial output, again fuelled by unions’ strikes, raises some questions on the strength of the French recovery,” said Olivier Vigna, an economist at HSBC.

AFP
Global News
2017 | 2016 | 2015 | 2014 | 2013 | 2012 | 2011 | 2010 | News Archive
Most Viewed Companies
Ticker Price Volume
QNBK 127 470,450
ETISALAT 17.15 1,265,926
GFH 0.6
MMG 0
EMIRATESNBD 8 953,900
DAMAC 3.04 4,480,836
RIBL 10.94 4,342,308
Recent News

Maaden announces new Vice Chairman
The Saudi Arabian Mining Company (Maaden) announces the Board of Directors decision on June 21, 2017 of appointing H.E. Sulaiman Bin Abdulrahman Al-Gwaiz (non-executive member) as the Vice Chairman f

QNB sees minimal impact from standoff
Qatar National Bank said it expects to meet its earnings targets as the ongoing Saudi-led campaign to ‘isolate’ the country has minimal impact on its operations.

The Middle East’s largest le

Egypt seeks FDI boost as its economy struggles
Egypt’s investment ministry has finalised a much-anticipated set of regulations outlining incentives that it hopes will lure back badly needed foreign investors, Investment Minister Sahar Nasr told R

Qatar bourse says Gulf institutions dumped Qatari shares
The Qatar Stock Exchange on Wednesday said it believed some institutional investors from Saudi Arabia, the UAE and Bahrain dumped shares to drive down the Qatari stock market in the wake of the diplo

UAE banks clear $175bn cheques in 5 months
A total of 12.922 million cheques worth Dh643.7 billion ($175 billion) were handled by the UAE Clearing Cheque System during the first five months of 2017, according to the UAE Central Bank data.

GulfBase GCC Index
Search By
  • Company Symbol
  • Company Name
  • Mutual Fund Name
  • News Content
Send this page to a friend

Poll

Looking ahead, what change you are more likely to make in investing in your domestic stock market?