German Economics Minister Philipp Roesler presents the 2013 annual economic report at the federal press conference in Berlin, Germany, yesterday. Europe’s main stock markets ended mixed yesterday as the German government slashed its 2013 growth forecast to 0.4%.

AFP/London


Europe’s main stock markets ended mixed yesterday despite investor sentiment being hit by more gloomy economic news as the World Bank and Germany cutting growth forecasts, traders said.
London’s FTSE 100 index of leading companies slid 0.22% to 6,103.98 points, while Frankfurt’s DAX 30 added 0.2% to 7,691.13 points and in Paris the CAC 40 gained 0.3% to 3,708.49 points.
Weighing on the euro was a report quoting Jean-Claude Juncker, head of the eurozone finance ministers’ group and Luxembourg’s prime minister, as saying that the euro’s value was “dangerously high.”
The European single currency subsequently edged down to $1.3302 from $1.3304 in New York late on Tuesday. On the London Bullion Market, gold prices dipped to $1,676.25 an ounce from $1,680.50.
“We’ve seen a bit of a softer tone in equity markets today after the World Bank adjusted its growth forecasts downward for 2013,” said Michael Hewson, Senior Market Analyst at CMC Markets UK.
The German government also slashed its growth forecasts, although this was largely expected, he added.
“Given the news flow today it’s hard to fathom why markets aren’t lower than they are, given the continued stream of bad news from the retail sector,” added Hewson.
European equities had taken a knock on Tuesday after weaker-than-expected 2012 economic growth data for Germany.
But a rise in US industrial output of 0.3% in December, higher than expected, and better than expected bank results, helped European markets pick up in late trade.
In a heavy blow yesterday, Germany slashed its official 2013 growth forecast to 0.4%, compared with the prior estimate of 1%. However, it also forecast a solid rebound in 2014.
Meanwhile, the World Bank cut its 2013 global economic growth forecast to 2.4%, from the previous figure of 3%, and described the recovery as “fragile and uncertain”.
And in more downbeat news, industry data showed yesterday that European auto sales plunged to their lowest point in 17 years in 2012, while French carmaker Renault announced 7,500 job cuts.
New car registrations in the European Union fell by 8.2% from their 2011 level to 12.05mn units last year, the European Automobile Manufacturers’ Association said.
US stocks were mixed in midday trading. While earnings from leading Wall Street banks exceeded expectations, Boeing’s 787 Dreamliner problems were cause for concern.
The Dow Jones Industrial Average was down 0.17% to 13,511.84 points.
The broad-based S&P 500 dipped 0.01% to 1,472.18 points and the tech-heavy Nasdaq Composite added 0.26% to 3,118.78.
While JPMorgan Chase and Goldman Sachs reported fourth-quarter profits that beat expectations, shares in US aerospace giant and Dow member Boeing fell more than 4% in early trading following the latest problem with its 787 plane.
Japan’s two biggest airlines took half the global Dreamliner fleet out of service on safety grounds yesterday after an emergency landing by an ANA flight.
Boeing shares later recovered to show a loss of 3.3% to $74.43 in midday trading.