European stocks end busy week on mixed note

Europe’s main stock markets ended mixed yesterday, with positive data from the United States providing a late spur after concerns over China’s latest inflation-busting move, analysts said.

Official US data showed a sharp rebound of 5.8 per cent in industrial production in 2010, with December coming in at double expectations, helping US stock to rise in morning trading.

Earlier, China’s central bank had said it would raise the amount of money lenders must keep in reserve, the latest in a series of such hikes aimed at reining in high inflation.

London’s FTSE 100 index fell 0.36 per cent to 6002.07 points, with mining stocks suffering on China’s inflation move.

Fresnillo lost 4.24 per cent, Anglo American 3.23 per cent, Antofagasta 2.40 per cent and Rio Tinto 1.5 per cent.

“The selling in mining stocks was a bit of a knee-jerk reaction to the move by China with investors fearing moves by China to curb spiralling inflation could suppress metal demand,” said Joshua Raymond, an analyst for City Index traders.

Computer chip makers received a boost after US giant Intel posted late Thursday record net profit of $11.7 billion (€8.75 billion) for 2010, up 167 per cent, on revenue of $43.6 billion.

British chip maker ARM Holdings was the strongest performer gaining 5.26 per cent.

Intel’s earnings were “helping to encourage buyer demand for tech stocks across Europe,” said Mr Raymond.

Frankfurt ended the day unchanged at 7075.70 points thanks to a late rally, with ThyssenKrupp the big loser after the surprise departure of its chief financial officer.

ThyssenKrupp lost 3.2 per cent, while BMW gained 2.18 per cent and Daimler gained 1.78 per cent.

In Paris, the CAC 40 rose for the fourth consecutive day, ending up 0.21 per cent at 3983.28 points in a fairly shapeless day of trading, analysts said.

“Even if the volume of transactions wasn’t as big this session, the market hasn’t really taken any direction. The Chinese decision did not disturb the index as a whole,” said Frederic Aubel at Global Equities.

Luxury goods makers suffered amid concerns about a dip in Chinese demand, with LVMH dropping 1.77 per cent and Hermes sliding 2.11 per cent.

“The luxury sector performed very well last year, it is normal that investors will sell and turn in other directions,” said Mr Aubel.

Elsewhere in Europe, Madrid ended up 0.14 per cent while Lisbon dropped 1.21 per cent. Amsterdam rose 0.15 per cent and Brussels slid 0.43 per cent.

In the US, the Dow Jones Industrial Average was up 0.18 per cent at 1700 GMT and the Nasdaq Composite up 0.27 per cent.

The positive news came after a slow start as investors digested China’s latest move, sparking growth fears for the world’s second-largest economy.