LONDON: European share prices slid for the most part yesterday, despite soaring investor confidence in eurozone powerhouse Germany, with Frankfurt stocks wobbling on rumours that focused on the country’s venerable central bank, dealers said.
Equities also fell after a subdued session in Asia, as the Bank of Japan’s plan to boost the economy disappointed many investors.
As stock markets shut down for the day, London’s FTSE 100 index of top companies had edged slightly lower, down by 0.03 percent to 6,179.17 points. Frankfurt’s DAX 30 index lost 0.68 percent to 7,696.21 points and in Paris, the CAC 40 index declined by 0.59 percent to 3,741.01.
A spokeswoman for the German financial markets watchdog BaFin said: “We will look to determine if there was an attempt to manipulate markets,” after rumours circulated via social media regarding a possible resignation of central bank governor Jens Weidmann.
The Bundesbank firmly denied the speculation, with a spokesman saying: “It is completely false.”
US markets were also mostly softer in midday deals meanwhile as traders came back from a three-day weekend, with the Dow Jones Industrial Average up a slight 0.03 percent, the broad-based S&P 500 giving up 0.15 percent and the tech-heavy Nasdaq Composite off by 0.30 percent.
In foreign exchange activity, the European single currency edged lower to $1.3296 from $1.3313 late on Monday in New York. On the London Bullion Market, gold prices rose to $1,690.50 an ounce from $1,687.50.
On sovereign debt markets, Portuguese 10-year bonds traded with a yield of 5.9 percent, the first time they were below 6.0 percent since December 2010, a sign of rising confidence in debt issued by weaker eurozone countries.
In another upbeat development, German investor sentiment has struck the highest levels since the start of the eurozone debt crisis in 2010 as the outlook for Europe’s top economy continues to brighten, a survey found. The investor confidence index calculated by the ZEW economic institute soared to 31.5 points in January from 6.9 points in December.
Asian markets traded mixed, with Tokyo’s Nikkei falling and the yen strengthening as the Bank of Japan’s plan to boost the economy fell flat. The Tokyo stock market finished 0.35 percent lower, Hong Kong gained 0.29 percent and Seoul won 0.49 percent, while Sydney was flat and Shanghai fell 0.56 percent in value. AFP
