A financial trader uses a telephone as he works at the Frankfurt Stock Exchange. Europe’s main stock markets traded mixed yesterday as investors responded to economic data from China and the US.
Europe’s main stock markets traded mixed yesterday as investors responded to economic data from China and the US.
On the corporate front, US-based Chiquita Brands and Ireland’s Fyffes Plc said they were merging in a deal that would create the world’s biggest banana supplier with annual revenue of $4.6bn (€6.4bn).
London’s FTSE 100 slid 0.35% to 6,689.45 points while the DAX 30 in Frankfurt fell 0.91% to 9,265.50 points.
However, in Paris the CAC 40 climbed 0.10% compared with Friday’s closing values to 4,370.84.
Madrid added 0.30% and Milan rose 0.58%.
“UK and European shares continue to falter at their multi-year highs following weak Chinese export data released over the weekend,” said CMC Markets UK analyst Jasper Lawler.
“The DAX led the charge lower, with Germany also being the most exposed to the explosive situation in Ukraine, due to their high dependence on Ukrainian natural gas,” he added.
A threat by Russian gas giant Gazprom on Friday to cut off gas supplies to Ukraine, which is the major transit country for the rest of Europe, put the chill on stocks.
Germany, the eurozone’s top economy, depends on Russia for about a third of its gas supplies, while other countries in central Europe are nearly completely dependent on Russian supplies which flow through Ukraine.
Beijing said on Saturday it had recorded an unexpected trade deficit of $22.98bn in February.
The figure compared with a surplus of $14.8bn in the same month last year, and a median forecast of an $11.9bn surplus. Exports fell 18.1% and imports jumped 10.1%.
“A poor Chinese trade balance reading has put the miners on the back foot once again, with the sector giving back most of February’s surge, as traders take advantage of weaker consumption expectations in the east Asian behemoth,” said Chris Beauchamp, market analyst at traders IG.
In foreign exchange, the euro edged up to $1.3877 from $1.3874 late in New York on Friday.
The dollar dipped to 103.22 yen from 103.24 yen on Friday.
On the London Bullion Market, the price of gold rose to $1,344 an ounce from $1,335.25 on Friday.
US stocks pushed lower yesterday, with the Dow Jones Industrial Average falling 0.42% to 16, points in midday trade.