LONDON: Europe’s main stock markets posted mixed results yesterday, while the euro declined against the dollar as traders digested positive US monthly jobs data. London’s FTSE 100 index added 0.22 percent to close at 5,914.4 points as Frankfurt’s DAX 30 gave up 0.22 percent to 7,517.80 points and the Paris CAC 40 gained 0.11 percent to 3,605.61 points, a new high for the year.
Overall “the market is in a holding pattern by lack of any catalyst,” said analyst Renaud Murail of Barclays Bourse in Paris.
In New York, a surprise fall in the US unemployment rate to 7.7 percent for November gave markets an initial boost, with the jobs data showing little impact from Hurricane Sandy.
In midday trading however, the Dow Jones Industrial Average was up 0.31 percent, while the S&P 500 added just 0.08 percent and the Nasdaq Composite fell by 0.42 percent.
The November jobs market data came in better than expected, with the economy adding 146,000 jobs, a gain from October’s 138,000, which had been revised downward from the previous report.
European stock markets have registered strong increases this week, with Frankfurt striking a near five-year high and Paris hitting its best level so far this year, as investors bet on a better news for the single currency bloc despite debt strains.
“European equities are higher and peripheral bond yields lower as investors have become more comfortable with the idea that both the political will and central bank will to save the euro is stronger than the economic reality,” said Angus Campbell, head of market analysis at Capital Spreads trading group.
In foreign exchange deals yesterday, the euro eased to $1.2935 from $1.2969 late in New York on Thursday.
Gold prices rose to $1,701.50 an ounce on the London Bullion Market, from $1,694.25.
The European single currency had turned sharply lower on Thursday after the European Central Bank said a decision to leave its key rate unchanged was not unanimous. Traders had expected the central bank to hold fire at its last policy meeting of 2012, but the revelation by ECB head Mario Draghi that some members of the governing council supported a rate cut was enough for markets to take pause.
“The prospect of negative interest rates is a sell signal that any sane currency trader could not ignore, which explains the speed and scale of the move so far,” said Alistair Cotton, analyst at foreign exchange group Currencies Direct.
Further weighing on the euro Friday were comments from Germany’s central bank that the country, Europe’s biggest economy, would fail to escape the debt crisis and might even see a technical recession early next year.
In company news, Italian private equity fund Investindustrial has bought a 37.5 percent stake in legendary British carmaker Aston Martin, the two firms said in a joint statement yesterday. Investindustrial was to invest £150m ($240m) in Aston Martin in the form of a capital increase.
Asian stock markets closed mostly higher after Wall Street had risen on Thursday.