|
Bourses fall on job fears
|
 |
June 4, 1999: 5:21 a.m. ET
U.S. employment forecasts drag down European stocks as euro slide continues
|
LONDON (CNNfn) - European stocks quickly lost early gains Friday as nervousness grew ahead of U.S. jobs data later in the day. Investors held back in light trading despite the prospect of a peace deal in Kosovo.
In London, the FTSE 100 slipped 13.2 points or 0.21 percent to 6,335.4 after four straight days of rises.
Germany's Xetra Dax also fell back slightly after being closed for a public holiday Thursday, though by less than a point to 5,039.96. The CAC 40 in Paris faltered even more by mid-morning, losing 36.66 points to reach 4,317.86 and Switzerland's SMI eased 32.4 points or 0.46 percent to hit 7,027.8.
European markets have been awaiting U.S. unemployment data for May, forecast at 4.3 percent, with hourly earnings anticipated to rise 0.3 percent. In New York, the Dow Jones Industrial average added 85 points overnight, to close at 10,663.69, as traders tiptoed through the session on the lookout for inflationary pressures that could spell higher interest rates.
Early indications are for a modestly higher opening in New York later Friday. S&P 500 futures on the Globex trading system were down 2.50 at 1,302.50. Brokers estimated fair value for the futures index to be 1,301.47.
European markets fear any data that could induce the Federal reserve to jack up rates.
The FTSE Eurotop 300 of the largest pan-European stocks reflected the thin trading, with the index less than a point down at 1,295.1. Transport stocks were up 0.98 percent while pharmaceuticals dipped 0.60 percent.
In London, early losers outnumbered gainers by three to one. Telecom and banking stocks both succumbed to consolidation of recent gains.
HSBC (HSBA) lost 2.22 percent at 2,112 pence and Sun Life & Provincial (SLP) shed 3.2 percent at 488 pence.
Media stocks also fell back with Reuters (RTR) losing 2.55 percent at 842 pence and Reed International (REED) losing 0.93 percent at 479 pence.
Deutsche Telekom (FDTE) said Friday it plans to roll out 280 million shares under a capital increase. The offering could be worth up to 12.6 billion euros ($13 billion) if the issue is priced at 45 euros, the top of the indicated range. The issue marks a major thrust in Telekom's efforts to put behind it a humiliating defeat to Italy's Olivetti in a battle for control of Telecom Italia. Deutsche shares were off 0.70 euros at 38.35 euros in Frankfurt Friday.
In Paris, hotel group Accor (PAC) was down 0.88 percent at 237.5 euros amid talk of a bid for holiday firm Club Med (PCU) Banking stocks were also badly hit with BNP (PBNP) down 1.75 percent at 81.45 euros and Société Générale (PGLE) losing 1.09 percent at 181.3 euros.
The euro will remain under scrutiny Friday after dipping to a new low of $1.0270 in Tokyo trade. By mid-morning the euro was at $1.0309 in European trading.
--from staff and wire reports
|
|
|
|
|
 |
|
