European stocks slide on Syria, Fed tapering

• 09/09/2013 - 18:52

  European stocks slide on Syria, Fed tapering

  
  

  09 Sep 2013

  0
  LONDON (AFP)

  

  European equities retreated on Monday despite gains across Asia, as sentiment was hit by fresh fears over Syria and the possible withdrawal of US Federal Reserve stimulus, dealers said.
  London's benchmark FTSE 100 index ended the day down 0.25 percent at 6,530.74 points.
  Frankfurt's DAX 30 was virtually unchanged at 8,276.32 points and the CAC 40 in Paris slid 0.22 percent to 4,040.33 points.
  The European single currency climbed to $1.3211 from $1.3180 late on Friday. The dollar rose to 99.37 yen from 99.07 yen.
  On the London Bullion Market, gold prices firmed to $1,390.00 an ounce from $1,387.
  "Expectations of a positive start for Europe's markets after the recent Chinese and Japanese data soon gave way to the proverbial elephant in the room of Syria, as markets digested weekend comments from President Assad that Syria and its allies would strike back if attacked," said Michael Hewson, senior market analyst at CMC Markets UK.
  "While these concerns have restricted any prospect of strong gains and kept Europe's markets on the back foot for most of the day, the likelihood of an imminent strike from the US still looks slim at this stage," he said.
  Markets are also hampered by lingering fears that the US Federal Reserve could decide soon to taper, or wind down, its vast stimulus policy known as quantitative easing.
  Weaker-than-forecast US jobs figures raised concerns on Friday about the world's number one economy but also fuelled hope that the Fed would hold off reducing its stimulus programme for the time being.
  Meanwhile, sentiment remains rattled by fears of a looming intervention in Syria.
  Syrian leader Bashar al-Assad warned Monday that the United States would "pay the price" if it attacks Syria, as Moscow unveiled a plan to head off strikes by collecting Syrian chemical weapons.
  US President Barack Obama meanwhile was to give no fewer than six media interviews later in the day to defend his plan to the US public and lawmakers, before giving a major national address Tuesday
  In company news on Monday, pharmaceuticals group GlaxoSmithKline saw its share price slip 0.67 percent to 1,640.00 pence following news of a major divestment.
  Japanese drinks giant Suntory has agreed to buy the British drugs firm's top-selling Lucozade and Ribena brands for $2.1 billion, the pair said.
  BP shares dropped 0.33 percent to 444.10 pence, despite news that the British energy giant has discovered a "significant" amount of gas in the East Nile Delta in offshore Egypt after drilling the deepest ever well in the region.
  On the upside, shares in Lloyds Banking Group rallied 1.82 percent to 76.78 pence, with sentiment buoyed after the lender relaunched its former TSB bank division back onto the high street.
  Asian stocks rose Monday as strong Chinese trade data lifted hopes for the global economic outlook while Japanese stocks were boosted by improved growth figures and Tokyo's successful bid to host the 2020 Olympics.
  Chinese data on Sunday showed exports jumped 7.2 percent year-on-year to $190.6 billion last month, much better than the 6.0 percent expected by economists. It was also better than the 5.1 percent rise seen in July.
  The figures are the latest in a string of good results out of Beijing that indicate China's painful slowdown over much of the first six months of 2013 may have come to an end. Earlier this month the government said manufacturing activity grew at its fastest pace in 16 months in August.
  Shanghai equities soared 3.39 percent and Hong Kong added 0.57 percent after the upbeat data from the Asian powerhouse nation.
  The Tokyo stock market jumped 2.48 percent, boosted by Tokyo's Olympics success and after official data showed that the nation's economy grew by 0.9 percent in the second quarter, up from a prior reading of 0.6 percent.
  Elsewhere in the region, Sydney stocks rose 0.71 percent in the first session back after the conservative Liberal/National coalition won a weekend general election in Australia, as widely expected.
  US stocks opened higher Monday on strong economic data from China and Japan.
  In midday trade, the Dow Jones Industrial Average jumped 0.82 percent, the broad-based S&P 500 added 0.75 percent, while the tech-rich Nasdaq Composite Index tacked on 0.89 percent.
  

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