Europe’s main stock markets lost ground yesterday as investors paused for breath, following last week’s gains which were rooted in optimism over the global economic outlook and the Greek debt crisis.

London’s benchmark FTSE 100 index slipped 0.07 per cent to 5,961.11 points, while in Frankfurt the DAX 30 dipped 0.05 per cent to 7,154.22 points, and in Paris the CAC 40 fell 0.47 per cent to 3,577.88 points.

In foreign exchange deals, the euro rose to $1.3244 from $1.3175 late in New York on Friday.

US stocks moved higher in midday trading after tech giant Apple’s unexpected announcement of a massive dividend plan and share buyback, with the Dow Jones Industrial Average up 0.22 per cent to 13,261.22 points in early trades.

The broad-market S&P 500 gained 0.50 per cent to 1,411.18 points and the tech-heavy Nasdaq Composite rose 0.82 per cent to 3,080.21 points.

Shares of Apple, the world’s largest company by market capitalisation, jumped more than two percent on opening at news it would spend part of its massive cash hoard to pay its first dividend since 1995 and buy back $10 billion in shares.

Apple said it would pay a quarterly dividend of $2.65 per share from its huge cash balance, estimated to be at least $97 billion, from sales of its hugely successful gadgets like the iPad and iPhone.

Asian shares were mostly higher yesterday on the back of lingering optimism over the recovery in the global economy but the advances were tempered by US data that came in below expectations.

Despite Monday’s modest losses, European shares have soared in value since the start of 2012, boosted by upbeat company results and growing optimism that the worst of the eurozone crisis is over.

So far this year, the London market has gained nine per cent, Paris 15 per cent and Frankfurt has surged by 22 per cent, but sentiment remains clouded by high oil prices and fresh concerns about debt-laden Portugal, dealers said.

“Market had a brighter start to year following Greek debt agreement and strong corporate performances, notably in the United States,” said trader Mike Mason at Sucden Financial Private Clients.

In Asia, Tokyo rose 0.12 per cent, Shanghai added 0.23 per cent, Sydney climbed 0.34 per cent and Seoul won 0.62 per cent. On the downside, Hong Kong shares closed 0.95 per cent lower.

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