European stock markets eased yesterday as export-driven auto makers were pressured by the euro's rise to new all-time highs against the dollar, while Air France KLM rose after giving a pleasing outlook.
Shares in the world's top airline by revenue gained 1.8 per cent to €14.27 after it reported forecast-beating operating profits and kept its sights on full-year growth.
Losers included AstraZeneca, which gave up 2.1 per cent as dealers said Smith Barney cut its rating on Europe's biggest drug maker to "hold" from "buy".
The pan-European FTS-Eurofirst 300 index closed 0.11 per cent lower at 1,022.9 points, just near the day's low of 1,021 points. The index has retreated from a 28-month high of 1,040.55 on November 15, weighed down by high oil prices and the euro. It is still up nearly seven per cent so far this year.
"There are a lot of potential margin squeezes (for companies) - the dollar is one, oil is another and commodities is the third. When you put it all together, that's when you cannot just ignore it," said Jacob de-Tusch-Lec, a European equity strategist at Merrill Lynch. Among autos, Porsche fell 0.58 per cent and Volkswagen lost 0.26 per cent.
The euro hit a new record of $1.317 against the dollar. Sales of the US currency against most of its major competitors gathered momentum.
The DJ Euro Stoxx 50 index ended flat at 2,876.84 points. Energy groups BP and Total eased on weaker crude oil prices. In New York, stocks gained as oil prices stayed below $50 a barrel and data showed US consumer sentiment improved slightly this month. The Dow Jones industrial average rose 0.1 per cent, and the Nasdaq Composite gained 0.4 per cent.