European stock markets advance on weak oil prices

LONDON - European stock exchanges firmed on Tuesday as falling oil prices helped investors shake off a downbeat overnight session in New York, following bumper gains earlier in Tokyo, dealers said.

By (AFP)

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Published: Tue 13 Feb 2007, 4:59 PM

Last updated: Sat 4 Apr 2015, 9:54 PM

Markets were strengthened by Japanese share prices, which closed at their highest level six years and nine months, lifted by a weaker yen and hopes of upbeat economic growth figures this week, dealers said.

London’s FTSE 100 index of leading shares climbed 0.18 percent to 6,356.00 points, in Frankfurt the DAX 30 added 0.33 percent to 6,882.40 and in Paris the CAC 40 increased 0.36 percent to 5,664.48 points.

The DJ Euro Stoxx 50 index of eurozone blue chip shares won 0.38 percent to 4,229.94 points.

The euro stood at 1.2995 dollars.

Wall Street shares finished lower on Monday, with some traders citing concerns over slowing corporate profits, while investors awaited an economic update from Federal Reserve chief Ben Bernanke this week.

Meanwhile, world oil prices fell further on Tuesday after sinking by more than two dollars the previous day on fading prospects of an immediate output reduction from the Organization of the Petroleum Exporting Countries.

Weak crude prices boost sentiment across equities because they bite less into company profits, dealers said.

In Paris, Carrefour rebounded 3.40 percent to 47.79 euros, after diving 5.07 percent on Monday after the world’s second largest retailer posted fourth quarter revenues well below analyst forecasts.

French conglomerate Bouygues rose 1.32 percent to 53.75 euros as the shares were upgraded to ‘overweight’ from ‘neutral’ by broker JP Morgan following strong fourth-quarter results.

In Frankfurt, shares in ThyssenKrupp added 0.47 percent to 36.56 euros.

The German steel and heavy industry giant reaffirmed Tuesday its full-year targets, after earnings rose strongly in the first three months of its current business year.

Meanwhile in London, Anglo-Australian miner BHP Billiton and peer Rio Tinto were in focus amid reports the pair are considering making separate 40-billion-dollar bids for US aluminum giant Alcoa.

The report was roundly dismissed by analysts who said the valuation was too high and the pair had much better options for growth.

However, BHP Billiton shares added 1.05 percent to 1,060 pence and Rio Tinto won 1.08 percent to 2,715 pence.

In New York on Monday, the Dow Jones Industrial Average lost 0.22 percent to close at 12,552.55 points.

The Nasdaq composite shed 0.38 percent to 2,450.38 while the broad-market Standard and Poor’s 500 index lost 0.33 percent to 1,433.37 points.

In Asia on Tuesday, Tokyo’s Nikkei-225 index of leading shares added 0.67 percent to 17,621.45 points, the best closing level since May 10, 2000.

Dealers said investors reacted with relief after a Group of Seven finance chiefs meeting over the weekend made no explicit reference to the weak yen.

Hong Kong’s key Hang Seng index closed 2.24 percent lower at 20,132.25 points in a technical correction, dealers said.

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