European shares lose ground as oil prices climb
European shares lose ground as oil prices climb
LONDON (AFP) - Europe's main stock markets weakened on Monday as higher crude oil prices stoked investor concerns about rising energy costs that erode company profits, dealers said.In late morning European trading, the FTSE 100 index of top companies stood at 5,439.20 points, a drop of 0.29 percent.
Frankfurt's DAX 30 slid 0.65 percent to 6,404.18 points and the Paris CAC 40 handed back 0.45 percent to 4,433.77 near the half-way mark.
The Euro Stoxx 50 index of leading eurozone shares fell 0.63 percent to 3,346.25 points.
In foreign exchange trade, the European single currency recovered to 1.4737 dollars after striking a six-month low on Friday.
World oil prices moved higher on Monday, after sharp losses last week, as traders fretted about the potential impact of Tropical Storm Fay on energy facilities in the Gulf of Mexico, dealers said.
Airlines were among the hardest hit in European stock market trading on Monday because of the soaring cost of jet fuel, analysts said.
Kerosene is refined from crude oil, whose prices had rocketed to record highs above 147 dollars a barrel in July.
In London, British Airways' share price dived 2.78 percent lower to 253.75 pence.
In Paris, Air France-KLM stock shed 2.47 percent to 16.98 euros and Lufthansa shares lost 1.90 percent to 14.99 euros in Frankfurt.
On the positive side, BHP Billiton saw its share price gain 0.59 percent to 1,538 pence in London.
The world's biggest mining company posted a record 15.39-billion-US-dollar annual net profit on Monday -- and said it expected Asian demand to remain strong despite a global slowdown.
Boosted by higher earnings from its petroleum and iron ore divisions, the Anglo-Australian resources giant beat last year's net profit of 13.42 billion dollars by 14.7 percent to set an Australian corporate record.
The firm, which in February embarked on a hostile takeover bid for rival Rio Tinto, said average prices for most of its major commodities were higher in the financial year to June 30, 2008.
"Demand for raw materials in the emerging market economies has remained strong," it said. "In particular, China remains a key driver of global commodity consumption through its position as a net importer of raw materials."
Before the weekend, Wall Street closed narrowly mixed Friday as falling oil prices tamped down inflation worries and the dollar continued to rally on mounting signs of a slowing global economy.
The Dow Jones Industrial Average advanced 0.38 percent to close at 11,659.90 points, while the tech-rich Nasdaq composite fell 0.05 percent to 2,452.52.
The broad-market Standard & Poor's 500 index gained 0.41 percent to finish at 1,298.20 points.
In Asia on Monday, Japanese share prices gained 1.12 percent, helped by a rebound in financial issues and a weaker yen, which is good for exporters, dealers said.
However, Hong Kong shares closed down 1.09 percent, hit by worries about slowing economic growth and another dive in mainland Chinese stocks.
LONDON (AFP) - Europe's main stock markets weakened on Monday as higher crude oil prices stoked investor concerns about rising energy costs that erode company profits, dealers said.In late morning European trading, the FTSE 100 index of top companies stood at 5,439.20 points, a drop of 0.29 percent.Frankfurt's DAX 30 slid 0.65 percent to 6,404.18 points and the Paris CAC 40 handed back 0.45 percent to 4,433.77 near the half-way mark.
The Euro Stoxx 50 index of leading eurozone shares fell 0.63 percent to 3,346.25 points.
In foreign exchange trade, the European single currency recovered to 1.4737 dollars after striking a six-month low on Friday.
World oil prices moved higher on Monday, after sharp losses last week, as traders fretted about the potential impact of Tropical Storm Fay on energy facilities in the Gulf of Mexico, dealers said.
Airlines were among the hardest hit in European stock market trading on Monday because of the soaring cost of jet fuel, analysts said.
Kerosene is refined from crude oil, whose prices had rocketed to record highs above 147 dollars a barrel in July.
In London, British Airways' share price dived 2.78 percent lower to 253.75 pence.
In Paris, Air France-KLM stock shed 2.47 percent to 16.98 euros and Lufthansa shares lost 1.90 percent to 14.99 euros in Frankfurt.
On the positive side, BHP Billiton saw its share price gain 0.59 percent to 1,538 pence in London.
The world's biggest mining company posted a record 15.39-billion-US-dollar annual net profit on Monday -- and said it expected Asian demand to remain strong despite a global slowdown.
Boosted by higher earnings from its petroleum and iron ore divisions, the Anglo-Australian resources giant beat last year's net profit of 13.42 billion dollars by 14.7 percent to set an Australian corporate record.
The firm, which in February embarked on a hostile takeover bid for rival Rio Tinto, said average prices for most of its major commodities were higher in the financial year to June 30, 2008.
"Demand for raw materials in the emerging market economies has remained strong," it said. "In particular, China remains a key driver of global commodity consumption through its position as a net importer of raw materials."
Before the weekend, Wall Street closed narrowly mixed Friday as falling oil prices tamped down inflation worries and the dollar continued to rally on mounting signs of a slowing global economy.
The Dow Jones Industrial Average advanced 0.38 percent to close at 11,659.90 points, while the tech-rich Nasdaq composite fell 0.05 percent to 2,452.52.
The broad-market Standard & Poor's 500 index gained 0.41 percent to finish at 1,298.20 points.
In Asia on Monday, Japanese share prices gained 1.12 percent, helped by a rebound in financial issues and a weaker yen, which is good for exporters, dealers said.
However, Hong Kong shares closed down 1.09 percent, hit by worries about slowing economic growth and another dive in mainland Chinese stocks.
posted by ahmednisha @ 6:36 AM
0 Comments:
Post a Comment
Subscribe to Post Comments [Atom]
<< Home