LONDON, Feb 28: European stock markets sagged on Tuesday as investors waded through a flood of company news, while keeping an eye on the energy sector, dealers said.
London’s FTSE 100 index of leading shares slid 0.34 per cent to 5,855.80 points in early deals, Frankfurt’s DAX 30 fell 0.27 per cent to 5,899.39, and in Paris the CAC 40 decreased by 0.45 per cent to 5,057.42 points.
The DJ Euro Stoxx 50 index of leading eurozone shares shed 0.38 per cent to 3,825.93 points.
The euro stood at 1.1874 dollars.
Wall Street shares had closed higher Monday on solid earnings from home-improvement retailer Lowe’s, a decline in crude oil prices and an upbeat profit outlook from Verizon Communications.
Japanese share prices had finished with a slight gain on Tuesday, reversing early losses as market sentiment remained buoyant following the return of foreign investors, dealers said.
In European trading, the energy sector remained in focus in the wake of plans for state-controlled Gaz de France to acquire French energy group Suez, in a move that would thwart a bid for Suez by Enel of Italy.
France’s plan, which would create one of the largest energy groups in the world, has been denounced in Italy as economic protectionism.
In Paris trading, Suez shares slid by 2.88 per cent to 31.01 euros, while Gaz de France shares dropped 1.62 per cent to 28.5 euros.
Peer Electricite de France saw its shares plunge 3.94 per cent to 44.42 euros.
Meanwhile shares in AXA rose by 1.95 per cent to 30.28 euros after the French insurance group had reported a 12.0-per cent increase in net profit during 2005 to 4.173 billion euros.
In trading in London, Cable and Wireless shares slid 0.69 per cent to 107.75 pence after the telecommunications firm said it would axe 2,000 to 3,000 of its British workers by the end of 2010 as part of a radical restructuring plan.
The Royal Bank of Scotland saw its share price leap 3.44 per cent to 1,923 pence after it announced a 1.0-billion-pound (1.47-billion-euro, $1.74-billion) share buyback plan, alongside news of a 21-per cent jump in 2005 pre-tax profits.
And shares in British American Tobacco gained 2.94 per cent to 1,367 pence, despite posting a 29-per cent fall in 2005 pre-tax profits to 2.588 billion pounds. The results were however skewed by big deals from 2004.
Back on Wall Street on Monday, the Dow Jones Industrial Average finished up 0.32 per cent at 11,097.55 points. The Nasdaq index was 0.88 per cent higher at 2,307.18.
The broader Standard and Poor’s 500 benchmark rose 0.36 per cent to 1,294.12 points.
In Asia on Tuesday, Tokyo’s benchmark Nikkei-225 index had closed 0.08 per cent higher at 16,205.43 points.
Hong Kong’s key Hang Seng Index ended down 0.20 per cent at 15,918.48 on profit-taking after recent strong gains.—AFP