AFP
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European stock markets closed narrowly mixed yesterday, with London’s benchmark FTSE 100 index slipping 0.04% to 6,804.21 points.
In Paris, the CAC 40 shed 0.29% to 4,428.63 points, while Frankfurt’s DAX index edged up 0.09% to 9,659.63 points.
“European equity markets spent much of the session in negative territory as renewed risk aversion among investors in the run-up to the Scottish referendum and the (US Fed) meeting meant many investors steered clear of risk assets,” said Sucden Research analyst Kash Kamal.
“Furthermore a referendum on Scottish independence taking place this Thursday... is increasingly sowing uncertainty and consequently keeping investors out of stocks,” said Markus Huber, senior analyst at broker Peregrine & Black.
Ahead of the major events, investors reacted to weak Chinese economic data and a possible shake-up of the beer industry.
Beijing said on Saturday that industrial production grew by 6.9% last month, its weakest rate since December 2008.
The key indicator slumped from 9% growth in July and was also well short of the 8.7% median increase expected in a survey of 15 economists by The Wall Street Journal.
The figures add to worries about the world’s number two economy – a key driver of global commerce –following recent indicators suggesting growth is weakening even after limited stimulus measures.
Yesterday, the OECD cut growth forecasts for most major advanced economies as it warned that the sickly eurozone recovery is a drag on world growth.
In Britain, Prime Minister David Cameron made his last visit to Scotland ahead of the referendum, hoping to boost the “No” vote, with polls predicting a very tight race.
Markets remain on edge, as the pound slumped last week to 10-month dollar low and three-month euro troughs on fears over the impact of Scottish independence.
The European single currency dropped to $1.2949 from $1.2927.
On the London Bullion Market, gold hit an eight-month low at $1,225.67 an ounce.
It later recovered to $1,234.25, up from $1,231.50 late on Friday.
Unsettled by the prospect the US Federal Reserve may begin hiking interest rates sooner rather than expected, investors will be listening to statements by Fed chief Janet Yellen after the Wednesday meeting.
The Fed has said it would keep interest rates low for a “considerable time” after ending stimulus, based on continued weakness in the labour market.
Wall Street was trading mixed, with the Dow Jones Industrial Average edging up 0.05% to 16,996.15 in midday trading.
The tech-rich Nasdaq fell 1.13% to 4,516points and the broad-based S&P slid 0.28% to 1,980.04 points.
In company activity, shares in SABMiller rallied 9.8% to 3,740 pence after Heineken revealed it had rejected a takeover by its British rival.
The hostile bid was itself aimed at protecting SABMiller, the world’s second-biggest brewer, from a takeover by the world’s number one, Belgium’s AB InBev, analysts said.
AB InBev shares were up 2.8% to €88.18.
In US market news, Alibaba struck a conciliatory note over its failure to list in Hong Kong, as the Chinese e-commerce giant began an Asian roadshow before a possible record-breaking IPO in New York.
Alibaba’s initial public offering starting as early as next week is expected to raise between $19-24bn, and will trade on the New York Stock Exchange under the symbol “BABA”.
