European shares slip from seven-week peak on China data
European shares slipped from a seven-week high to end lower yesterday as economic numbers failed to impress investors and a spike in Chinese inflation raised the prospects of interest rate hikes in the country. The FTSEurofirst 300 index of top...
European shares slipped from a seven-week high to end lower yesterday as economic numbers failed to impress investors and a spike in Chinese inflation raised the prospects of interest rate hikes in the country.
The FTSEurofirst 300 index of top European shares finished 0.3 per cent lower at 1,056.00 points after hitting a seven-week high of 1,060.64 earlier in the session. The index climbed 26 per cent in 2009 and has surged 63 per cent since hitting a record low in early March last year.
Volumes were 80 per cent of the 90-day daily average. Banks were among the top losers, with STOXX Europe banking index falling 0.7 per cent. Standard Chartered, HSBC, Barclays, BNP Paribas, Société Générale and Natixis fell 0.6 to 1.8 per cent.
"We have a lack of drivers probably in the short term," said Gerhard Schwarz, head of global equity strategy at UniCredit.
"Chinese figures that came out this morning remind us that we will see a further tightening of conditions globally over the next couple of months." Figures showed Chinese consumer inflation jumped to a 16-month high in February and a raft of other domestic data displayed broad-based strength, providing fresh arguments for policy tightening sooner rather than later.
And in the UK, Britons' expectations for inflation over the next 12 months rose to 2.5 per cent in February from 2.4 per cent in November, a Bank of England survey showed.
US macro-economic data also failed to cheer investors.
The number of US workers filing new applications for unemployment benefits fell slightly less than expected last week, hinting at a slow labour market recovery.
Across Europe, Britain's FTSE 100 index, Germany's DAX and France's CAC 40 fell 0.1-0.4 per cent. "Tomorrow will see the end of a week that has been uneventful from a financial market perspective," said Angus Campbell, head of sales at Capital Spreads.
"We've gone nowhere since Monday as indecision seems to reign supreme for investors at the moment. At least we get some more influential economic data being released on Friday in the form of US retail sales and the University of Michigan sentiment," he added. (Reuters)