European shares rebound, oil prices retreat
European stock markets rebounded yesterday on upbeat economic data from China and the chance of advances in the eurozone debt crisis, especially in Greece and Spain.
London’s benchmark FTSE 100 index of top companies rose by 0.21 per cent to close at 5,805.61 points, Frankfurt’s DAX 30 added 0.40 per cent to 7,261.25 points and in Paris the CAC 40 advanced by 0.92 per cent to 3,420.28.
Madrid’s IBEX 35 index climbed by 0.34 per cent to 7,678.50 points as Spain said it hoped EU leaders would progress rapidly at a summit this week towards a direct recapitalisation of the country’s troubled banking system.
CitiFX analyst Valentin Marinov said: “Some investors and market analysts are already looking at the November EU summit for potential resolution of the issues in Spain and Greece.”
In New York, stock markets also posted gains in midday trades, with the Dow Jones Industrial Average up by 0.50 per cent. The broader S&P 500 index advanced by 0.45 per cent, while the tech-rich Nasdaq added 0.42 per cent. Stronger early European gains were pared back somewhat however by contrasting US economic data.
While the latest US retail sales number was unexpectedly strong, manufacturing activity in the region around New York declined for the third consecutive month.
In foreign exchange trading yesterday, the euro edged down to $1.2952 from $1.2958 late in New York on Friday. Meanwhile, oil prices fell slightly yesterday as a weak demand outlook offset Middle East supply risks caused by tensions between Syria and Turkey, analysts said.
Brent North Sea crude for delivery in November eased eight cents to $114.54 an ounce in London midday deals. New York’s main contract, light sweet crude for November slipped 37 cents to $91.49 a barrel.
The International Energy Agency (IEA) on Friday said it expected global demand for oil through 2016 to grow by half a million barrels a day less than previously estimated. (AFP)