European stocks recede

Published July 8, 2006

LONDON, July 7: European stocks slipped on Friday in a quiet day for corporate news, with London shares drifting lower as investors prepared to remember the victims of last year's deadly July 7 bombings, dealers said.

London's FTSE 100 index of leading shares slipped 0.13 per cent to 5,882.10 points, Frankfurt's DAX 30 index fell 0.64 per cent to 5,659.18 points and the Paris CAC 40 shed 0.36 per cent to 4,948.62.

The DJ Euro Stoxx 50 index of leading eurozone shares decreased 0.45 per cent to 3,646.00 points.

The euro stood at $1.2778.

Wall Street shares closed higher Thursday as investors positioned for a key US jobs report, with blue chips buoyed by a favorable court ruling for the tobacco industry.

Japanese share prices closed little changed Friday as investors turned cautious ahead of key US jobs data later in the day, dealers said.

Member companies listed on the British stock market were asked to stop trading on Friday to honour a nationwide two-minute silence at 12:00pm (1100 GMT).

The London Stock Exchange will join the rest of the United Kingdom in observing a two minute silence as a mark of respect for the victims of last year's London bombings, the LSE said in an official statement.

In Paris, shares in Electricite de France (EDF) slid 2.16 per cent to 38.49 euros.

Back in the US on Thursday, the Dow Jones Industrial Average ended with a gain of 0.66 per cent at 11,225.30.

Dow component Altria, parent of tobacco giant Philip Morris USA, led blue chips higher after the Florida Supreme Court rejected a $145 billion punitive damage award against the industry for smokers.

The other Wall Street indices showed smaller gains. The tech-heavy Nasdaq composite edged up 0.08 per cent to 2,155.09 points while the Standard and Poor's 500 index increased by 0.25 per cent to 1,274.08.

The market rose after the Institute of Supply Management said its survey of the massive US service sector showed a cooler pace of growth.

The ISM non-manufacturing index fell to 57.0 per cent in June from 60.1 per cent in May.—AFP