European stock markets slip

Published December 9, 2006

LONDON, Dec 8: European stock markets declined on Friday after Wall Street had extended losses overnight ahead of key US jobs data, while mining shares dived in London.

London's FTSE 100 index of leading shares fell 0.33 per cent to 6,111.40 points, in Frankfurt the DAX 30 slipped 0.29 per cent to reach 6,394.14 points and the Paris CAC 40 dropped 0.45 per cent to 5,355.17.

The DJ Euro Stoxx 50 index of eurozone blue chip shares decreased 0.40 per cent to 4,002.62 points. The euro stood at 1.3291 dollars.

Jitters ahead of Friday's crucial report on US jobs growth kept Wall Street on the defensive, with the major stock indexes all closing lower on Thursday.

Mining stocks were the biggest fallers in London after US broker Merrill Lynch reiterated its cautious view on base metal prices and downgraded several stocks in a downbeat sector note.

Xstrata dived 3.77 per cent to 2,324 pence, Antofagasta slid 3.66 per cent to 520.5 pence and BHP Billiton shed 3.19 per cent to 941 pence.

Merrill Lynch said it continues to view copper and nickel prices as too high and told clients that it is forecasting a significant correction in copper prices in the first half of 2007, driven by weaker demand and significant supply growth.

In Frankfurt meanwhile, TUI dipped 0.06 per cent to 15.84 euros after a report said Europe's biggest travel and tourism group is expected to cut between 3,500 and 4,000 jobs in France, Britain and Germany as part of a restructuring effort.

TUI's supervisory board is to decide on the plan next week, the German daily Sueddeutsche Zeitung said without citing its sources.

Across the Atlantic, the Dow Jones Industrial Average closed down 0.25 per cent to 12,279.21 points on Thursday.

The tech-dominated Nasdaq composite fell 0.74 per cent to 2,427.69 points and the broad-market Standard and Poor's 500 index shed 0.40 per cent to 1,407.29.—AFP

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