Euro stocks ease as US election dominates London
European share prices eased gently early on Tuesday as investors turned cautious on the day that one of the closest US presidential races in history climaxes. The London market had other reasons for caution, as investors were also waiting for a key Financial statement from Chancellor Gordon Brown on Wednesday and an interest rate decision the following day. The FTSE 100 index fell 0.3 per cent to 6,408.7 pence. In Paris the CAC 40 slipped 0.1 per cent to 6,344.58, while in Frankfurt the DAX index drifted 0.3 per cent lower to 7,113.74 points. Investors looked to "old economy" stocks for inspiration, taking their cue from a 1.5-per cent jump in the Dow Jones Industrial Average on Monday. The Nasdaq technology-rich exchange by contrast dipped one percent, and new economy stocks were hence out of favour once again.Oil stocks were the pick of the pack, with Shell up 1.8 per cent to 551 pence BP up 0.9 per cent to 573 pence ahead of its results which were due out later in the day, and France's TotalFinaElf up 1.4 per cent to 161.80 euros. BA carried on where it Left off on Monday, when it reported strong profit growth in the second quarter of 2000. Its stock rose another 1.5 per cent to 356.25 pence. But tobacco giant BAT fell 2.5 percent to 487.5 pence on the news that US tobacco firms had failed in an attempt to overturn huge damages awarded by a Florida jury. Of reporting companies, France Telecom was unchanged at 120 euros after posting nine-month sales growth of 21.6 per cent to 23.95 billion euros. French telecom network operator Equant saw its stock fall 1.3 per cent despite reporting that losses were lower than the market expected for the most recent quarter. British retailer Marks and Spencer fell 1.5 per cent to 182.25 pence after posting a 4.9-per cent dip in six-month profits.
Asian markets move in narrow range
Korean share prices fell 0.6 per cent Tuesday on program selling and concerns over delays in the restructuring of Daewoo Motor Co. and Hyundai Engineering and Construction, dealers said. The Korea Stock Exchange index closed down 3.31 points at 553.35. Volume was 344.4 million shares worth 1.8 trillion won (1.38 billion dollars). Indonesian share prices closed up 1.4 per cent Tuesday in mixed trade, with continued buying in blue chips led by telecommunications and cigarette stocks, dealers said. The strong index run was fuelled by bargain-hunting largely by foreign houses, a dealer at a local brokerage said. Strong gains in cigarette stocks, combined with continued bargain-hunting in telecom, were enough to push up the main index.
Singapore share prices closed 0.7 per cent higher Tuesday on gains in US stocks overnight amid general cautiousness on the eve of US elections, dealers said. The key Straits Times Index advanced 14.46 points to 2,021.30.
A dealer with a bank-linked brokerage said investors were buying blue chips and banking stocks, but trading was subdued ahead of elections to choose the next US President. Polls showed Vice President Al Gore of the Democratic Party and his Republican rival George W. Bush running neck-and-neck in the race to the White House on the eve of the ballot. There was also an absence of fresh news to perk up buying sentiment, but the key index should remain above the psychological 2,000-point level, the dealer added.
AFP
Copyright © 2000 Indian Express Newspapers (Bombay) Ltd.