• Home
• /
• Markets

European stocks fall as Iraq concerns escalate

The FTSEurofirst 300 index of top European shares fell 0.7 per cent to its lowest since early June, while Germany’s DAX share index dropped 0.5 per cent by 1015 GMT. The MSCI world equity index, which tracks shares in 45 countries, fell 0.3 per cent to a one-week low. The weakness in European stocks followed a sell-off in overseas markets.

MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.4 per cent, while Japan’s Nikkei ended 0.7 per cent lower. In volatile US trading, the S&P 500 closed 0.6 per cent weaker after hitting a fourth record high following upbeat US data. Risk-averse investors turned their attention to relatively safer assets. Yields of German government bonds, perceived as safe havens, fell towards their lowest this year. German 10-year yields were three basis point lower at 1.29 per cent.

WTI for August delivery climbed as much as $1.47 to $107.50 a barrel in electronic trading on the New York Mercantile Exchange and was at $106.45 at 12.26pm in London. Brent for August settlement declined 79 cents to $113.67 a barrel on the ICE Futures Europe exchange.

Gold for August delivery fell 0.6 per cent to $1,313.70 an ounce by 7.26am on the Comex in New York. Bullion for immediate delivery lost 0.4 per cent to $1,313.14 in London.

Sensex slips

The benchmark Sensex closed 55.16 points lower at 25,313.74 on caution ahead of monthly derivatives expiry and volatile global oil prices due to continued violence in crude producer Iraq. After opening in positive zone, the BSE Sensex slipped on selling in heavy-weight stocks, to close lower by 55.16 points, or 0.22 per cent, at 25,313.74.