Europe's markets close lower, waiting for ECB

Tuesday, 08. March 2016 18:16

Stock markets in Europe traded lower on Tuesday, with Chinese trading data hurting mining sector, particularly visible in the United Kingdom. Investors were looking forward to the European Central Bank meeting on March 10, and falling oil prices didn't help the sentiment either.

The German DAX index finished down 0.93% at 9,687 points. Energy sector was slammed: RWE dropped 4.56% and E.ON dipped 2.83%. Industrial giant ThyssenKrupp lost 3.67%, and the losses extended in the automotive sector, with Volkswagen, Daimler and BMW losing 3.93%, 3.08% and 2.15%, respectively. Chemicals saw modest gains: K+S rose 0.88% and Beiersdorf added 0.47%.

In France, the CAC 40 index slid 0.89% to 4,402 points. ArcelorMittal plunged 8.23%, Renault lost 4.25% and Peugeot followed with a drop of 3.75%. Technip, Alstom, LafargeHolcim, Total were all down more than 2%. Shares of Nokia slid 3.82% despite its latest study that 3G data traffic growth of 85% outpaced the 2G traffic in 2015. Among few advancers were LeGrand rising 0.72%, L'Oreal adding 0.36% and Bouygues Telecom adding 0.19%.

Across La Manche, the FTSE 100 fell 0.92% to 6,125 points. Mining companies suffered huge losses from bad China data: Glencore dag in 17.77%, Anglo American rolled down 15.30%, Rio Tinto dropped 9.43%, BHP Billiton fell 8.41%. Burberry Group Plc took the crown with gains of 5.16%, following the news that an anonymous investor was to launch a takeover bid to acquire the luxury clothing retailer. Rumour has it could be LVMH or some other rival.

The Swiss Market Index slipped down 0.60% to 7,791 points, despite somewhat better consumer price data. Transocean suffered loss of 7.44% after the energy utility company and its partner Keppel Corp. announced a delay in delivery of jack-up rigs, since Transocean couldn't pay in time. Financial sector pulled the index down: UBS (-1.81%), Julius Baer (-1.30%), Swiss RE (-0.95%), Zurich Insurance (-0.75%).

The Czech market PX index defied the trend rising 0.51% to 892 points, while the CTX index added 0.68% to 1,131 points, with very nice data on annual growth of gross domestic product by 4.9%, lower employment rate at 6.3%, higher exports and foreign currency reserves. The Czech koruna added 0.06% against the euro.

On currency front, the euro gained 0.17% versus the U.S. dollar, and 0.36% against the U.K. pound, but lost 0.05% compared to the Swiss franc in the after-hours forex trade.

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Breaking the News / ZR