LONDON/dubai: European equities advanced yesterday while the yen rose against the dollar amid uncertainty surrounding Tuesday’s Group of Seven (G7) statement on foreign exchange volatility.
London’s FTSE 100 index of leading companies gained 0.33 percent to 6,359.11 points, closing at its highest level since May 19, 2008. Frankfurt’s DAX 30 rose by 0.67 percent to 7,711.89 points, and in Paris the CAC 40 climbed by 0.32 percent to 3,698.53 points.
“European markets have managed to maintain a positive tone despite some disappointing earnings announcements from across Europe,” said CMC Markets UK analyst Michael Hewson.
In foreign exchange activity, the dollar dipped to 93.43 yen compared with 93.47 yen late in New York on Tuesday. The euro fell to $1.3448 from $1.3454, and also fell against the yen.
Gold prices dipped to $1,645 an ounce from $1,647.50 on the London Bullion Market on Tuesday.
Markets will also be watching a two-day Bank of Japan (BoJ) policy meeting, which wraps up today, and whether policymakers unveil fresh easing measures.
In European corporate action, shares in Peugeot Citroen soared by over seven percent to 6.40 euros in late afternoon trade, despite the French automaker reporting a record loss of 5.0 billion euros.
US stocks were mixed in midday trade, with the Dow Jones Industrial Average down 0.41 percent to 13,961.16 points.
The S&P 500, a broad measure of the markets, slipped 0.06 percent to 1,518.52 points, while the tech-rich Nasdaq Composite edged up 0.09 percent to 3,189.44 points.
Egypt’s bourse slipped from a one-week high yesterday after ratings agency Moody’s cut the country’s credit rating, raising fears of diminishing foreign inflows, while Gulf markets extend gains from an early-year rally. Moody’s downgraded Egypt one notch to B3 and warned a further downgrade is possible. The ratings agency cited the economic impact of civil unrest two years after the ousting of President Hosni Mubarak as the main factor behind the downgrade. It also said it had doubts about Egypt’s ability to secure International Monetary Fund support.
Elsewhere, most Gulf markets rose, with Dubai’s Emaar Properties propelling the emirate’s rally as investors await dividend announcements.
Investors expect Emaar to pay a dividend of around 0.1 dirhams ($0.03) at its annual general meeting in the coming weeks, in line with what was given out over the last two years.
Shares in Emaar rose 2 percent, extending 2013 gains to 34.4 percent. Dubai’s index climbed 0.8 percent, up 17.3 percent year-to-date. Abu Dhabi’s benchmark advanced 1.1 percent to a 39-month high.
Small-cap property stocks dominate trade, signalling a high level of retail activity. Eshraq Properties and Rak Properties rise 13.1 and 3.7 percent respectively.
Qatar’s bourse gained 0.6 percent, driven by a 1.7 percent advance from Qatar Telecom.
Gulf International Services jumped 4.6 percent, its largest one-day gain since September 2011. The stock has risen in 11 of the last 12 sessions.
Oman’s measure rose 0.3 percent, with heavyweight Bank Muscat supporting. The lender said on Wednesday it was in advanced talks on a private share sale with an international institution, with the deal set to complete by the end of the month.
In Saudi Arabia, the benchmark ticked up 0.08 points, its fifth consecutive gain, while Kuwait’s index advanced 0.4 percent.
AFP/Reuters
