European stocks mixed

Published January 5, 2008

LONDON, Jan 4: Europe’s main stock markets performed mixed on Friday at the end of a tough week for global equities owing to record-high oil prices that risk fuelling inflation and slowing economic growth.

London’s FTSE 100 index was up 0.72 per cent at 6,526.00 points in early afternoon trade, while Frankfurt’s DAX 30 fell 0.33 per cent to 7,882.61 points and in Paris the CAC 40 was flat at 5,547.98.

The DJ Euro Stoxx 50 index of eurozone shares edged up 0.09 per cent to 4,337.49 points.

The European single currency fell to $1.4715.

Equity markets will most likely trade for several months the way they traded for the last six -- sideways with considerable volatility -- and Wall Street can be expected to set the pace with its upside limited by poor earnings momentum and its downside by lower interest rates, said Mike Lenhoff, chief strategist at Brewin Dolphin stockbrokers.

US stocks closed mixed Thursday as oil hit a record high of 100.09 dollars a barrel, stoking inflation concerns ahead of Friday’s key US employment report, dealers said.

They said that a stronger yen also rattled the Tokyo market on its first trading session of 2008 because of the negative impact on exporter earnings.

In London the FTSE was being supported by buoyant mining stocks and a sharp gain for mobile phone retailer Carphone Warehouse.

Mining giant Rio Tinto won 2.94 per cent to 5,528 pence and Anglo-Australian rival BHP Billiton gained 2.76 per cent to 1,641 pence on soaring commodity prices.

On Thursday, gold struck an historic level of $868.89 an ounce on the London Bullion Market.

Carphone Warehouse meanwhile saw its share price soar 8.21 per cent to 359.25 pence to top the FTSE 100, on rumours that the retailer has enjoyed strong sales of Apple’s iPhone and on vague takeover speculation, dealers said.

There are many stories around. There was a story yesterday (Thursday) that iPhone sales have been much better than expected and Vodafone bid rumours,said one London-based trader.—AFP

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