Europe Trading Sharply Lower Ahead Of Economic Data
AvaTrade | May 31, 2013 05:06AM ET
Asian markets closed mostly lower on Friday, and failed to pick up steam from the U.S markets which closed in a positive territory. However, the Nikkei 225 which dived more than 5% yesterday did manage to close with a gain of 1.37%, but still down over 4% during this week. Most traders do believe that the recent plunge in the Nikkei was down to the appreciation of the Yen against the dollar, and increased volatility in the bond market.
The Shanghai index was the worst performer during the Asian session which closed with a loss of 0.72%, but it did manage to close the week with a gain of 1.11%. On the other hand, the Hang Seng index is down nearly -1.22% for the week and also closed lower today with a loss of -0.41%. Back in Tokyo, stocks reacted to a positive economic data release Japanese industrial production increased to 1.7% for the month of April and Core Consumer prices also increased to 0.3% in April.
Sony Corp. gained more than 2.1% after the media news that the company has approached to Morgan Stanley and Citigroup to spin-off its entertainment business. Exporters also gained despite the U.S. dollar straddled the 101 yen level and the shares of Fanuc Corp. and Kyocera Corp both gained 4.3% and 2.6 respectively. Fast retailing did manage to recover some of its losses, when the company plunged nearly 11%. The stock for the company was up nearly 5.1% today.
The European stock market is trading sharply lower during the early hours of trading as investors are hesitant to make any commitment ahead of the U.S consumer data and the eurozone unemployment figure. The CAC 40 is the worst performing index among the European indices and is down by almost -1.21%. The IBEX 35, DAX, FTSE 100 are all trading lower with a loss of -0.94%, -0.98% and -0.90%.
JP Morgan Cazenove has cut rating of Linde AG from overweight to neutral; shares are trading lower with a loss of -1.1%
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