Europe’s main stock markets were mostly lower yesterday after disappointing US economic news and continued concern over Greece, though London, the biggest, bucked the trend and made slim gains.
US figures showed the economy grew 1.8 per cent in the first quarter, unchanged from initial estimates which the markets had expected would be revised upwards. Additionally, US new jobless claims rose, rather than fell, as had been expected.
London’s FTSE 100 index of leading shares ended the day up 0.18 per cent at 5,880.99 points. But in Frankfurt, the DAX fell 0.79 per cent to 7,114.09 points while in Paris the CAC 40 dropped 0.30 per cent at 3,917.22 points.
In generally unconvincing trade, even London was in negative territory half an hour before the close of trading. For Thomas Julien, economist at Natixis, the US growth figure was “on the whole disappointing,” though a moderate rebound could follow in coming quarters.
In more bad news from across the Atlantic, the Labour Department announced that new US jobless claims rose last week after two weeks of declines.
In the face of economic insecurity employers, as in Europe, have been reluctant to hire. “Is it a blip or a real slowdown in activity? It’s too soon to say but not to ask?” said Philippe Waechter at Natixis AM France.
In London, the miners and oil majors provided support as they made some ground after losses earlier in the week.
Anglo-American put on 2.2 per cent while Shell added 0.94 per cent. Investors remain concerned over Greece’s debt amid uncertainty about how the fiscally-strapped nation’s problems can be resolved.
Greek President Carolos Papoulias has summoned political leaders to discuss the indebted nation’s economy today, seeking consensus on the Socialist government’s austerity moves, his office said.
According to local media, Mr Papoulias called the meeting at the behest of Mr Papandreou, who has being trying for several days to obtain at least minimal opposition support for a hardening of the austerity measures already introduced in a bid to tame the country’s runaway debt.
The latest plans were drawn up at the request of the European Union and the International Monetary Fund who are bailing out Greece to the tune of €110 billion ($155 billion).
Elsewhere in Europe, stocks also lost ground with Milan the biggest faller, shedding 0.71 per cent. Brussels was off 0.57 per cent with Lisbon down 0.45 percent, Madrid 0.14 per cent and Amsterdam losing 0.12 per cent. Swiss stocks were little changed.
In Asian trade earlier, markets mostly rebounded on bargain hunting after a recent sell-off while the first gain for the Dow in three days also provided some support.
Tokyo rallied 1.48 per cent, Sydney rose 1.65 per cent and Seoul jumped 2.75 per cent. Hong Kong rose 0.67 per cent but Shanghai gave up early gains to end 0.19 per cent lower.
Wall Street was mixed at 1615 GMT, with the blue-chip Dow Jones Industrial Average down 0.30 per cent. The tech-heavy Nasdaq Composite meanwhile rose 0.29 per cent and the S&P 500 fell 0.18 per cent.
Trade was subdued, dealers said, as investors looked ahead to a long holiday weekend. Markets will be closed Monday for Memorial Day. (AFP)