Uncertainty About German Rates Pressures Markets Across Europe
May 03, 2011
Until very recently, analysts had voiced confidence that the German Bundesbank would move to cut its benchmark securities repurchase rate at Thursday's policy meeting. German rate changes often are seen as a harbinger for rate movements in other European countries. But an upbeat report out early Wednesday on business sentiment in Western Germany appeared to diminish the possibility that the central bank will cut its benchmark rate. The German data caused stocks to close lower in Germany, the U.K., France, Spain and Belgium. Elsewhere, Italian share prices ended little changed as investors await preliminary August consumer price data, scheduled to be released by nine Italian cities after the close of the market Wednesday and Thursday. Meanwhile, shares in Amsterdam fell on a weakening dollar. Continued gains for pharmaceutical group AB Astra supported the Swedish index, helping shares to end flat. Gold shares on South Africa's Johannesburg Stock Exchange edged lower on listless gold price and a stagnant rand. In dollar terms, the European sector of the Dow Jones World Stock Index fell 0.28 to 145.38 Wednesday, following Tuesday's gain of 0.81. The world index as a whole added 0.23 to 139.40, after gaining 0.06 a day earlier. Biotechnology and fishing stocks led the Dow Jones Global Industry Groups, while savings-and-loan and tobacco issues were among the laggards. European Stock Market Indexes Market Belgium
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