Closing Market Report
Star-Bulletin news services
|
European stocks slip in holiday trading
By Laurence Frost
Associated Press
PARIS » European stocks edged down and Asian markets were mixed amid thin trading yesterday, as U.S. and British exchanges remained closed for public holidays.
The Dow Jones Euro Stoxx 50 index of euro-zone equities fell 0.6 percent to 3,679.57 points despite a boost for steelmakers, driven by raised hopes of industry consolidation.
The Xetra Dax, Germany's main benchmark index, lost 0.6 percent lower at 5,755.02 points while France's CAC-40 ended 0.6 percent lower at 5,015.32.
Toll road and car park operator Vinci led the French index down, following unconfirmed reports of an impending tie-up with property developer Nexity SAS that analysts said would raise questions about Vinci's strategy.
Vinci shares closed 2.8 percent lower at $93.96 in late afternoon Paris trading. Shares in tire maker Michelin, whose head Edouard Michelin died in a boating accident on Friday, ended 0.5 percent lower at $65.
Luxembourg-based steelmaker Arcelor SA, which on Friday announced a deal with Russia's OAO Severstal as it seeks to fend off a bid from Mittal Steel Co., bucked the trend, gaining 3.9 percent to $41.85, racking up the highest number of transactions among Paris stocks.
Arcelor's rise followed reports in the Wall Street Journal and Financial Times newspapers that Mittal adviser Goldman Sachs was organizing resistance to the Severstal plan among Arcelor shareholders. Mittal shares were 5 percent higher at $33.49.
In currencies, the euro rose to $1.2751 yesterday from $1.2721 late Friday. The dollar fell against the yen.
Earlier, Asian equities put in a mixed performance. Japan's benchmark Nikkei 225 index fell 55.08 points, or 0.34 percent, to finish at 15,915.68 points on the Tokyo Stock Exchange after spending most of the day in positive territory, as investors sold technology stocks following Friday's sharp gains. Before its 1.77 rise Friday, the Nikkei had tumbled 9.2 percent since May 8.
"Although the market appears to have corrected enough in terms of price levels, it's unclear if it will make a V-shaped recovery or continue adjustment for now," said Shigeharu Shiraishi, managing director at Societe Generale Asset Management. "But in the broad picture, now is a good time for buying."
Losers included technology issues, with Advantest Corp. falling 2 percent to $96.37 and Tokyo Electron Ltd. posting a 2.4 percent decline to $71.15. Japanese steelmakers continued to rise amid heightened hopes for global consolidation. Nippon Steel Corp. added 0.70 percent to $3.81 and JFE Holdings Inc. gained 1.67 percent to $43.01.
Other gainers included megabank Mitsubishi UFJ Financial Group Inc., which rose 2.67 percent to $13,628 and trading house Itochu Corp., which jumped 2.9 percent to $8.58.