AFP, Reuters/London
Europe’s main stock markets closed mixed yesterday as investors digested poor Chinese trade data that signalled fresh weakness in the world’s second-biggest economy, dealers said.
London’s benchmark FTSE 100 index dipped 0.36% to close at 7,064.30 points, while Frankfurt’s DAX 30 index was down 0.29% to 12,338.73 points.
The CAC 40 in Paris however rose 0.26% to 5,254.12 points.
In foreign exchange, the European single currency fell to $1.0583 from $1.0599 late in New York on Friday.
China’s customs administration said exports fell by a surprising 15% year-on-year in March, while imports tumbled 12.7%, in the latest data showing the Asian powerhouse economy is struggling. The news weighed on the mining and resources sector in Europe, because China is a
major consumer of raw materials.
In London, BHP Billiton’s share price tumbled 3.25% to 1,416pence. Anglo American dived 2.28% to 998.70 pence, Antofagasta dropped 2.50% to 722pence and Rio Tinto shed 0.81% to 2,814pence.
Adding to the mining sector’s woes, Citigroup downgraded its rating on the metals and mining sector to ‘neutral’.
It predicted iron ore will fall to $36 a tonne in the third quarter, from $47 currently, and stay below $40 for the rest of the year as big miners boost supply even further and China’s demand declines.
Shares in Nokia rose for a second day after Credit Suisse and UBS both lent credence to reports about imminent bids for the company’s maps unit.
The analysts also supported the idea a sale would be a precursor to Alcatel-Lucent’s wireless consolidation, sending shares in the French firm up 1%.
Irish packaging firm Smurfit Kappa rose 2% on bid speculation and Orad Hi-Tec, a German technology provider for broadcasters, surged 35% after agreeing to be bought by US-based Avid Technology.
Sydbank jumped 5.9% after the bank unveiled a share buyback programme.
In contrast, Norwegian seismic oil and gas explorer TGS slumped 12.4% after it cut its full-year revenue guidance and said it would lay off a tenth of its workforce.
Volkswagen fell 1.8% after the German carmaker plunged into a full-blown leadership crisis. Chief executive Martin Winterkorn let it be known on Saturday he will fight for his job even though the group’s chairman has reportedly withdrawn confidence in him.
Wall Street, meanwhile, was trading in positive territory as a heavy week of earnings and economic data got under way.
The Dow Jones Industrial Average was up 0.13% in midday trade, while the broad-based S&P 500 gained 0.19%. The tech-rich Nasdaq Composite Index advanced 0.51%.
