16/03/2005 12:28
European stocks moved lower on Wednesday following losses in the technology sector on Wall Street overnight and amid continuing concerns over the effect of high oil prices. Also weighing on the London market were eight stocks turning ex-dividend, including high yielding banks Lloyds TSB and HBOS.
The FTSE Eurofirst 300 index moved 0.4 per cent lower to 1,090.23. In London, the FTSE 100 index lost 0.6 per cent to 4,968.7, Germany’s Xetra Dax shed 0.2 per cent to 4378.92 and France’s CAC-40 slipped 0.3 per cent 4,068.53.
Overnight on Wall Street, semiconductor shares led stocks down to their lowest levels since February 23. The Dow Jones Industrial Average lost 59 points to 10,745.10 while the Nasdaq Composite Index finished 16 points lower at 2,034.98.
Oil prices eased overnight, with April Nymex WTI crude futures loosing 50 cents to $54.55 a barrel. A statement following Wednesday’s meeting of Opec oil ministers in Iran announced that the cartel was going to increase crude production by 2 per cent, however it remains within $2 of its all-time high and fears over the resulting increase in costs continue to weigh on stocks.
In Europe, chipmakers moved lower following a 2.1 per cent drop in the Philadelphia Stock Exchange’s semiconductor index overnight. Worries over quarterly earnings and potential growth in the sector sparked the move after a bearish research note from investment bank Merril Lynch.
Franco-Italian chipmaker STMicroelectronics lost 0.7 per cent to €13.09 while Infineon, the German chipmaker, fell 0.9 per cent to €7.42. Elsewhere in the technology sector, French telecoms equipment maker Alcatel moved 0.6 per cent lower to €9.78 while Sweden’s Ericsson lost 1.5 per cent to SKr 20.20.
The oil sector also moved into reverse, giving back some of the gains made as crude prices have risen over the last few months, reflecting the announcement following Wednesday’s Opec oil ministers’ meeting that the cartel would increase production by 2 per cent.
Anglo-Dutch producer Royal Dutch lost 0.7 per cent to €47.01, BP moved 1.2 per cent lower to 561p while France’s Total fell 0.6 per cent to €181.50.
Elsewhere, Schering, the German drugmaker lost 2.1 per cent to €54.80, on news that it faces an attempt by a rival to sell a generic copy of its key Yasmin contraceptive drug. The news that an application had been made to sell the generic product emerged on the US Food and Drug Administration’s website, although the identity of the applicant has not been revealed. A spokesman from Schering said that the company believed it had strong patent protection which it would defend.
Italy’s Banca Popolare di Verona e Novara lost 4.7 per cent to €14.07 after reports in the Italian press that it was considering an offer for Italian rival Banca Nazionale del Lavoro were not well received by investors. Banco Popolare di Verona e Novara issued a statement denying the story. Shares in Banca Nazionale del Lavoro rose 1 per cent to €2.21.
Arcelor, the world’s largest steelmaker, rose 0.5 per cent to €18.60. On Tuesday, Merrill Lynch restarted coverage of the company, with a “buy” investment rating and a price target of €25.
Swiss-based Adecco, the world’s top staffing group, posted a 9 per cent rise in its full-year net profit of €332m on the back of a job market recovery . While these figures were in line with market expectations, continued pricing pressures in 2004 weighed on the firm’s gross margin, a key figure for analysts, which fell from 17 per cent to 16.7 per cent. Shares lost 0.4 per cent to Sfr67.45.
The FTSE Eurofirst 300 index moved 0.4 per cent lower to 1,090.23. In London, the FTSE 100 index lost 0.6 per cent to 4,968.7, Germany’s Xetra Dax shed 0.2 per cent to 4378.92 and France’s CAC-40 slipped 0.3 per cent 4,068.53.
Overnight on Wall Street, semiconductor shares led stocks down to their lowest levels since February 23. The Dow Jones Industrial Average lost 59 points to 10,745.10 while the Nasdaq Composite Index finished 16 points lower at 2,034.98.
Oil prices eased overnight, with April Nymex WTI crude futures loosing 50 cents to $54.55 a barrel. A statement following Wednesday’s meeting of Opec oil ministers in Iran announced that the cartel was going to increase crude production by 2 per cent, however it remains within $2 of its all-time high and fears over the resulting increase in costs continue to weigh on stocks.
In Europe, chipmakers moved lower following a 2.1 per cent drop in the Philadelphia Stock Exchange’s semiconductor index overnight. Worries over quarterly earnings and potential growth in the sector sparked the move after a bearish research note from investment bank Merril Lynch.
Franco-Italian chipmaker STMicroelectronics lost 0.7 per cent to €13.09 while Infineon, the German chipmaker, fell 0.9 per cent to €7.42. Elsewhere in the technology sector, French telecoms equipment maker Alcatel moved 0.6 per cent lower to €9.78 while Sweden’s Ericsson lost 1.5 per cent to SKr 20.20.
The oil sector also moved into reverse, giving back some of the gains made as crude prices have risen over the last few months, reflecting the announcement following Wednesday’s Opec oil ministers’ meeting that the cartel would increase production by 2 per cent.
Anglo-Dutch producer Royal Dutch lost 0.7 per cent to €47.01, BP moved 1.2 per cent lower to 561p while France’s Total fell 0.6 per cent to €181.50.
Elsewhere, Schering, the German drugmaker lost 2.1 per cent to €54.80, on news that it faces an attempt by a rival to sell a generic copy of its key Yasmin contraceptive drug. The news that an application had been made to sell the generic product emerged on the US Food and Drug Administration’s website, although the identity of the applicant has not been revealed. A spokesman from Schering said that the company believed it had strong patent protection which it would defend.
Italy’s Banca Popolare di Verona e Novara lost 4.7 per cent to €14.07 after reports in the Italian press that it was considering an offer for Italian rival Banca Nazionale del Lavoro were not well received by investors. Banco Popolare di Verona e Novara issued a statement denying the story. Shares in Banca Nazionale del Lavoro rose 1 per cent to €2.21.
Arcelor, the world’s largest steelmaker, rose 0.5 per cent to €18.60. On Tuesday, Merrill Lynch restarted coverage of the company, with a “buy” investment rating and a price target of €25.
Swiss-based Adecco, the world’s top staffing group, posted a 9 per cent rise in its full-year net profit of €332m on the back of a job market recovery . While these figures were in line with market expectations, continued pricing pressures in 2004 weighed on the firm’s gross margin, a key figure for analysts, which fell from 17 per cent to 16.7 per cent. Shares lost 0.4 per cent to Sfr67.45.
Related Articles
