European stocks lower in quiet session
Saturday, 26 September 2009
LONDON, Sept 25 (Dow Jones): European stocks were generally a tad lower Friday, as investors attempted to balance the mixed U.S. economic data of the previous session with the temptation to take profits ahead of the weekend break.
U.S. stocks closed in negative territory Thursday after disappointing existing home sales at the end of a week that has been lackluster, with stocks taking a breather following their stellar summer run.
"The dive in markets since the FOMC [rate decision Wednesday] is indicative of the tactical dangers of sitting in a market that expects good news," said Dominic Wilson, director of global macro and markets research at Goldman Sachs.
Wilson said the core picture of good growth news, falling inflation and easing financial conditions is still in place and Goldman's trading stance remains pro-risk, "reflecting our view that this pullback - like those before it - will likely be temporary," he said.
"But industrial news is undershooting a bit lately relative to high expectations and it is less clear what will take the market higher in the very near-term."
By 0810 GMT, and in a quiet market, the pan-European Stoxx 600 index was 0.4% lower at 238.99. Frankfurt's DAX fell 0.5% to 5576.4 and Paris's CAC-40 declined 0.3% to 3745.5. But London's FTSE 100 was up 0.1% at 5084.9, outperforming its peers.
Among the leading gainers in Europe, ING Groep was up 1% at EUR11.3 after Australia and New Zealand Banking Group said it will buy ING's stake in their Australia and New Zealand wealth management and life insurance joint venture for EUR1.1 billion.
Elsewhere, DnB Nor ASA, Norway's largest lender launched a 14 billion Norwegian kroner rights issue, meaning that it does not need to apply for state aid. It also reiterated its guidance on 2009 and 2010 loan-loss provisions and operating profit. It increased 4.5% to NOK66.7.
U.S. stocks closed in negative territory Thursday after disappointing existing home sales at the end of a week that has been lackluster, with stocks taking a breather following their stellar summer run.
"The dive in markets since the FOMC [rate decision Wednesday] is indicative of the tactical dangers of sitting in a market that expects good news," said Dominic Wilson, director of global macro and markets research at Goldman Sachs.
Wilson said the core picture of good growth news, falling inflation and easing financial conditions is still in place and Goldman's trading stance remains pro-risk, "reflecting our view that this pullback - like those before it - will likely be temporary," he said.
"But industrial news is undershooting a bit lately relative to high expectations and it is less clear what will take the market higher in the very near-term."
By 0810 GMT, and in a quiet market, the pan-European Stoxx 600 index was 0.4% lower at 238.99. Frankfurt's DAX fell 0.5% to 5576.4 and Paris's CAC-40 declined 0.3% to 3745.5. But London's FTSE 100 was up 0.1% at 5084.9, outperforming its peers.
Among the leading gainers in Europe, ING Groep was up 1% at EUR11.3 after Australia and New Zealand Banking Group said it will buy ING's stake in their Australia and New Zealand wealth management and life insurance joint venture for EUR1.1 billion.
Elsewhere, DnB Nor ASA, Norway's largest lender launched a 14 billion Norwegian kroner rights issue, meaning that it does not need to apply for state aid. It also reiterated its guidance on 2009 and 2010 loan-loss provisions and operating profit. It increased 4.5% to NOK66.7.