NEWS / Indicators

Euro stocks in lacklustre trade; greenback stable

LONDON: European stock markets closed mixed yesterday in directionless trading, mirroring a similar trend on Wall Street, dealers said.

Investors had waited most of the day for a speech by US Federal Reserve chairman Ben Bernanke who had been expected to provide clues about the outlook for US interest rates - a key concern of the market.

Speaking in the US state of Wyoming, Bernanke said that international terrorism was a threat to globalisation, but made no reference to monetary policy.

On the main European markets, the London FTSE 100 index closed up 0.16 at 5,878.60 points, in Paris the CAC 40 fell 0.03% to 5,111.13 while in Frankfurt the DAX lost 0.04% to close at 5,811.47 points.

The DJ Euro Stoxx 50 index of leading eurozone shares fell 0.02% to 3,781.17 points.

US stocks held in a narrow range yesterday amid a dearth of economic news, with traders seemingly unwilling to take new positions ahead of a late summer weekend.

The Dow Jones Industrial Average was down 0.23% at 11,278.69 while the Nasdaq composite rose 0.11% to 2,139.54.

The broad-market Standard & Poor's 500 index drifted down 0.09% to 1,294.92.

In London, miners and banks led the FTSE 100. Britain's fifth-biggest retail bank Lloyds TSB gained 0.57% to 526 pence owing to speculation that it could face a takeover bid.

Other banks gained on positive broker comments, with Barclays climbing 0.85% to 649.50 pence and HBOS gaining 0.69% to 949 pence.

Miners meanwhile gained on a rebound for commodities prices, with the share price of Anglo American progressing 0.68% to 2,358 pence.

In Frankfurt, German department store operator KarstadtQuelle fell 0.75% to 15.95 euros after the group suffered a further setback in a long-running dispute over real estate seized by the Nazis in Berlin in the 1930s.

Germany's state asset authority, BARoV, has approved the Jewish Claims Conference's claim for damages for allegedly misappropriated property dating back to the Nazi era.

Commerzbank gained 3.71% to 27.12% on speculation about consolidation in the German banking sector, which some analysts suggest could follow similar moves in Italy.

Elsewhere in Europe, in Madrid the Ibex-35 fell 0.11% to 12,042.9 points, in Brussels the Bel 20 gained 0.03% to 3,887.71 points and in Amsterdam the AEX gained 0.30% to 465.14 points.

In Italy, the SP/Mib gained 0.12% to 37,718 points.

The dollar held stable against the euro yesterday after a speech by Federal Reserve chief Ben Bernanke failed to provide any clues about the future direction of US interest rates.

The yen fell against both currencies and the euro approached the symbolic level of ??150, which it has never breached.

Analysts said the Japanese unit was under pressure after domestic consumer inflation data came in softer than expected.

The euro firmed slightly in late European trading to $1.2765 from $1.2758 late in New York on Thursday and to ??149.74 from ??148.68 late on Thursday.

The dollar jumped to ??117.31, from ??116.55 on Thursday.

Trading on Friday was cautious ahead of a expected comments from US Federal Reserve chairman Ben Bernanke, who spoke on the subject of global economic integration at the Fed's Kansas City Economic Symposium in the US state Wyoming.

Bernanke said that international terrorism was a threat to globalization and could hamper further integration of the world economy, but made no reference to monetary policy.

Traders are keen for signals on the likelihood of further interest rate rises by the US central bank, which earlier this month paused in its tightening campaign after 17 straight interest rate rises.

The pound was being traded at $1.8883.

On the London Bullion Market, the price of gold eased to $621.75 per ounce, from $623.75 late on Thursday. - AFP