Wealth Manager - the site for professional investment managers

Register to get unlimited access to all of Citywire’s Fund Manager database. Registration is free and only takes a minute.

Investors take profits in shares; euro rallies

Investors take profits in shares; euro rallies

European stock markets edged lower on Friday morning as investors took some profits after yesterday’s rally – but the euro continued to streak higher ahead of data on the state of the European economy.

The FTSE 100, which yesterday had one of its brightest days of a bullish start to 2013, opened down 0.1% to 6257 with miners Evraz (EVRE.L), Rio Tinto (RIO.L) and BHP Billiton (BLT.L) leading the falls, the trio down around 1% to 302p, 2,116p and 3,540p respectively.

There was little corporate news to provide European markets with a strong direction, with French and German indices little moved. Asian markets were mixed, but most US stocks closed up on Thursday, with the Standard & Poor’s 500 Index briefly scaling 1,500, as a surprise drop in jobless claims and strong earnings offset Apple's worst day in more than four years

European investors were looking ahead to data on UK GDP – expected to show a contraction in the fourth quarter of 2012 – as well as business sentiment in Germany.

The euro rose by 0.3% to $1.3411, adding to gains yesterday, ahead of data due from the European Central Bank on how much banks would pay back from the three year ‘LTRO’ lending operations which were credited with seeing off a ‘Lehman moment’ squeeze on liquidity.

Jennifer McKeown of Capital Economics said that repayments ‘should confirm that interbank markets are now functioning better and that some banks in the region feel more confident and hence do not need the large cash buffers that they had previously accepted’.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play JPM’s Negyal: Back divis to temper EM volatility

JPM’s Negyal: Back divis to temper EM volatility

Omar Negyal, co-manager of the JPMorgan Global Emerging Markets Income trust, says a dividend approach to emerging markets reduces the volatility of investing in the asset class.

Play WMR: Why Russia will lose this war

WMR: Why Russia will lose this war

Author and journalist Adam Lebor believes a perfect storm is brewing when it comes to the Russian economy. .

Play WMR: Gerard Lyons warns Asia is the real risk, not Russia & Ukraine

WMR: Gerard Lyons warns Asia is the real risk, not Russia & Ukraine

Chief economic adviser to London mayor Boris Johnson outlines the geo-political risks in Asia and explains why the risk of another eurozone crisis must not be underestimated.

Your Business: Cover Star Club

Profile: 'new normal' now is as dangerous as when it was applied to tech

Profile: 'new normal' now is as dangerous as when it was applied to tech

7IM's CIO Chris Darbyshire says he has been re-energised by his new role, but has little time for 'new normal' doom-mongers

Wealth Manager on Twitter