Eurostoxx 50:2,323.67 (–0.81) Frankfurt DAX:5,994.90 (–27.34) Paris CAC:3,230.90 (–8.16)
EUROPEAN SHARES pared heavy early losses to close flat after mixed data from Europe and the US, with investors cautiously awaiting the outcome of a meeting between France’s president and Germany’s chancellor on Europe’s debt crisis.
After the market closed, France’s Nicolas Sarkozy said there was no need to increase the size of the euro zone’s bailout fund or create a new “eurobond” to ease the region’s problems.
Sluggish GDP data from core European economies had seen the FTSEurofirst 300 index of top European shares fall as low as 951.03, before closing down 0.09 point at 969.16 points.
Germany, Europe’s largest economy, grew 0.1 per cent in the second quarter, while euro zone growth slowed to 0.2 per cent.
“ that the impact of the ongoing sovereign debt crisis on confidence and financial austerity measures are increasingly dragging on the European economy,” said Colin Cieszynski, market analyst at CMC Markets Canada.
German truck maker MAN and BMW fell 3.2 per cent and 0.7 per cent respectively on concerns over the outlook for growth.
Austerity measures weighed on Italian utilities such as Snam Rete Gas and electricity grid operator Terna , which traded around four times their 30-day average volume and fell 9.9 per cent and 13.6 per cent respectively after Italy increased taxes on the energy sector.
There was brighter news in the tech sector with companies such as chip designer ARM Holdings and telecom gear maker Alcatel-Lucent up 1 per cent and 2.4 per cent respectively, while Nokia rose 5.1 per cent, following Google’s takeover of handset maker Motorola Mobility on Monday.
Broker Merchant Securities said the $12.5 billion takeover by Google would raise the opportunity for faster product innovation from rivals that will continue to drive the adoption of smart-phones and cellular-connected tablet personal computers.
Gold-related equities like Fresnillo and Randgold, up 3.6 per cent and 4.1 per cent, were again sought after as a proxy for the precious metal which remains near its all-time high as investors, unconvinced over the global growth outlook, bought into its safe haven qualities. – (Reuters)
