European stock markets advance

Europe’s main stock markets advanced Tuesday, taking their lead from a stronger showing across much of Asia, and as investors digested new economic data in Europe.

Hong Kong’s main stocks index marked 11 straight wins and Tokyo hit a 26-year high, as investors press on with a global rally that has the region enjoying its best start since 2006.

Wall Street provided yet another record lead Monday, as eyes turn to the beginning of the corporate earnings season, with sentiment buoyed by strong economic readings and hopes that US President Donald Trump’s tax cuts will help fire up profits.
Around 1115 GMT, London’s benchmark FTSE 100 index was up 0.3 percent compared with Monday’s close.

“Once again the FTSE is flirting with a fresh all-time high, and once again it appears to lack the momentum to truly break through and provide a sequel to its end of 2017 rally,” noted Connor Campbell, analyst at traders Spreadex.

In the eurozone, Frankfurt’s DAX 30 won 0.1 percent and the Paris CAC 40 rose 0.5 percent — as data showed unemployment falling to the lowest level for nine years in the single currency area.

The EU’s official statistics agency said that the jobless rate in the single currency area fell to 8.7 percent in November from 8.8 percent in October, in line with analyst expectations.

In Britain, data showed that retailers saw a slowdown in sales over the crucial Christmas trading period, with shoppers squeezed by higher prices and stagnating wages.

Retail sales rose 1.4 percent last month from a year earlier, according to a survey from the British Retail Consortium (BRC) and financial group KPMG.

In Asia, Hong Kong’s main stocks index rose 0.4 percent, equalling its best run of gains since October 2012 and putting its record high in view.

Shanghai finished 0.1 percent higher — an eighth-straight gain — and Tokyo closed up 0.6 percent, at its highest closing level since November 1991, as traders returned from a long weekend break.

But Seoul closed down 0.1 percent after a more than three-percent drop in market heavyweight Samsung Electronics, which was hit after its forecast for record fourth-quarter profits missed expectations.

However, while markets continue to push ever higher, there are worries the advances this week could be petering out, and there are also warnings of a sharp correction on the horizon.

– Dollar steadies –

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The dollar held onto its gains against the pound and euro, consolidating its recent mini-rebound with the single currency unable to make inroads despite data showing eurozone economic sentiment at its highest since 2000.

However, with Trump’s tax cuts already priced in and the European Central Bank expected to begin winding down its stimulus, analysts say the greenback will likely face further pressure from the euro down the line.

Oil prices stabilised after a positive start to the year driven by unrest in major producer Iran and a depressed economy for fellow OPEC member Venezuela.

– Key figures around 1115 GMT –

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London – FTSE 100: UP 0.3 percent at 7,721.46 points

Frankfurt – DAX 30: UP 0.1 percent at 13,387.1

Paris – CAC 40: UP 0.5 percent at 5,514.06

EURO STOXX 50: UP 0.3 percent at 3,628.37

Tokyo – Nikkei 225: UP 0.6 percent at 23,849.99 (close)

Hong Kong – Hang Seng: UP 0.4 percent at 31,011.41 (close)

Shanghai – Composite: UP 0.1 percent at 3,413.90 (close)

New York – DOW: DOWN 0.1 percent at 25,283.00 (close)

Euro/dollar: DOWN at $1.1928 from $1.1967 at 2200 GMT

Pound/dollar: DOWN at $1.3533 from $1.3567

Dollar/yen: DOWN 112.81 yen from 113.08 yen

Oil – Brent North Sea: DOWN three cents at $67.75 per barrel

Oil – West Texas Intermediate: UP 11 cents at $61.84

Source:AFP