News Column

European stocks drop

February 1, 2014

European stock markets fell yesterday as solid economic growth in the United States was offset by downbeat company earnings and emerging market concerns. And after a few days out of the spotlight, investor focus returned to the eurozone as official data showed unemployment across the bloc stayed close to a record high. European stock markets closed lower yesterday, with London's benchmark FTSE 100 index ending the day down 0.43 per cent at 6,510.44 points. Frankfurt's DAX 30 dropped 0.71pc to 9,306.48 points and the CAC 40 in Paris slid 0.34pc to 4,165.72 points. Madrid lost 0.44pc while Milan edged up 0.03pc. US stocks had opened sharply lower on persistent worries over emerging market economies and a handful of earnings disappointments by US companies, but had clawed back part of their losses by midday. The Dow Jones Industrial Average was down 0.72pc to 15,733.85 points, while the broad-based S&P 500 slid 0.46pc to 1,785.96, and the tech-rich Nasdaq Composite Index dropped 0.48pc to 4,103.49. Investors punished companies with disappointing earnings and earnings forecasts, pushing Amazon, Chevron and Walmart lower. On the upside in Europe , Spanish banking group BBVA announced a 33-percent leap in annual net profits, with its shares nudging up 0.21pc to 8.86 euros . Shares in French luxury giant LVMH jumped 7.9pc to 132.15 on record sales last year, pulling up the sector. The euro fell against the dollar while safe-haven gold rose. The Turkish lira rose to 2.2592 to the dollar from 2.2655 late on Thursday but strengthened to 3.0501 to the euro from 3.0715. The Russian ruble dipped to 47.60 to the euro in late afternoon trading, not far from a historic low, and at 35.26 to the dollar was close to a five-year low point set on Wednesday. copyright

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Source: Daily Tribune (Bahrain)

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