European stocks, euro retreat before weekend
Asian stock markets closed mixed on Friday after weak Chinese inflation data.
LONDON (AFP) - European stock markets and the euro slid Friday on profit-taking heading into the weekend break, as investors took their leads from company updates and economic data.
London s benchmark FTSE 100 index lost 0.36 percent to stand at 6,811.86 points in afternoon trading.
Frankfurt s DAX 30 slipped 0.36 percent to 9,573.25 points and in Paris the CAC 40 shed 0.77 percent to 4,472.57 compared with Thursday s closing values.
"European markets continue to drag into the red after a string of disappointing corporate updates this morning," said trader Lee Mumford at SpreadEx.
European equities had risen on Thursday after European Central Bank president Mario Draghi hinted that policymakers were prepared to cut eurozone interest rates in June.
The same day, the euro hit a two-and-a-half-year peak near $1.40 after the ECB held interest rates at a record low for the seventh straight month, but then dived on hints of more easing.
ECB chief Draghi gave a strong suggestion that the bank could ease monetary conditions in the euro area next month, saying the "governing council is comfortable with acting next time".
Analysts said Wall Street s poor showing on Thursday had also fed through into Europe s final trading day of the week.
"Yesterday the markets succeeded in powering higher, thanks to a fairly rosy interpretation of Mario Draghi s comments in the ECB press conference," said Chris Beauchamp, market analyst at IG traders.
"From the action last night on US markets, it is difficult to build a case for further gains from here."
In foreign exchange Friday, the euro dropped to $1.3783 from $1.3840 late in New York on Thursday.
The European single currency drifted up to 81.80 pence from 81.73 pence on Thursday, while the British pound dropped to $1.6848 from $1.6931.
- Ad merger unravels -
Overnight, French group Publicis and Omnicom of the United States said they had abandoned merger talks on what would have formed the world s largest advertising company.
Investors seemed to shrug off the news. Shares in Publicis initially rose on the news, but in afternoon trading they were down 0.5 percent at 60.40 euros in Paris. Omnicom shares rose 0.8 percent to $66.75 in early trading in New York.
In London, International Airlines Group slid 3.7 percent to 389.7 pence despite the group revealing that it had significantly reduced its losses in the first quarter thanks to cost cutting at Spanish carrier Iberia and improved performance by British Airways.
Asian stock markets closed mixed on Friday after weak Chinese inflation data raised concerns about the risk of falling prices in the world s second-largest economy but also opened the door to possible stimulus measures from Beijing, traders said.
But India s stock market surged to a new high on hopes that election results next week will usher in a stable government capable of pushing reforms and reviving the flagging economy.
The Bombay Stock Exchange s benchmark index rose 3.15 percent to hit 23,048.49 points, before trimming some of the gains to close at 22,994.23 points.
The right-wing opposition BJP, led by Hindu hardliner Narendra Modi, is expected to oust the centre-left Congress from power after 10 years.
US stocks opened mixed Friday following uneven earnings and sales reports from leading retailers as investor sentiment remained muted.
Five minutes into trade, the Dow Jones Industrial Average advanced 0.07 percent to 16,562.28 points, while the broad-based S&P 500 dipped 0.04 percent to 1,874.92 and the tech-rich Nasdaq Composite Index shed 0.20 percent to 4,043.32 points.
"All eyes will be on Apple shares after it was rumoured they are in talks to buy Dr Dre s Beats headphones firm for $3.2 billion," said SpreadEx s Mumbord.
"If the takeover goes ahead, this will be Apples biggest takeover by a huge margin," he added.
Apple s shares dropped 0.8 percent to $583.14 in early trading on the Nasdaq.
