Stocks were down fractionally across Europe, extending a pattern of modest decline. The FTSE 100 recorded its sixth weekly loss, which is its worst losing streak of weekly declines since July 2008, as concerns about a tightening of US monetary policy, and a stronger pound, clouded the outlook for the basic commodity stocks that account for about a tenth of the FTSE’s weight.
As has been the case in recent months, it is the timing of any tapering in monetary stimulus by the Federal Reserve that is weighing on investors' minds. One fund manager, Martin Schlatter at Zurich-based Swiss Rock Asset Management, said the debate about the beginning of Fed tapering "hangs over markets like the sword of Damocles".
DUBLIN
The Iseq index was flat, although dealers noted that trading in general was "reasonably active" for the time of year. The main story of the day was the High Court's approval of Perrigo's pending acquisition of Elan, which clears the path for the deal to close next week. The approval sparked some buying activity during today's session and the stock closed up 0.2 per cent at €12.88. Elan's shares now have just two more days left of trading on the Irish Stock Exchange.
Aer Lingus rose 1.4 per cent to €1.28, while Ryanair was flat at €5.99. Global airline body Iata has upgraded its financial outlook for the industry, suggesting airlines will return a net profit of $12.9 billion, improving to $19.7 billion in 2014 – both figures are higher than its September forecast for profits.
Insurance company FBD climbed 3.8 per cent to €17.25, after investors speculated it may pick up some business from RSA Insurance Group. A research note from Davy suggested its property business was on track for "another very profitable year".
LONDON
UK stocks were little changed on the day, with the FTSE 100 finishing down less than 0.1 per cent. AstraZeneca rose 1.8 per cent to 3,518.5 pence after an advisory panel to the US drug regulator recommended the approval of its diabetes treatment, called dapagliflozin. A decision is expected by January 11th.
ARM Holdings gained the most in almost two months after announcing it had acquired Geomerics, a provider of lighting technology for the gaming and entertainment industry. The smartphone-chip designer closed at 1,001 pence, up 3 per cent.
RSA Insurance Group plunged 7.2 percent to 92.5 pence, an eight-year low, after chief executive Simon Lee resigned and the company said higher reserves related to an investigation at its Irish unit will reduce 2013 earnings.
EUROPE
The main faller was Peugeot, which slumped the most in five years as General Motors said it was selling its entire 7 per cent stake in the French carmaker, which it acquired last year. Peugeot declined 12 per cent to €9.34.
Overall, national benchmark indexes declined in 12 of the 18 western-European markets, with France’s CAC 40 losing 0.2 per cent and Germany’s DAX slipping 0.1 percent. The Stoxx Europe 600 Index fell 0.2 per cent in the session, adding to its second consecutive weekly drop.
US
Stocks fluctuated in early trading in New York, with the Standard and Poor's 500 Index poised for the biggest weekly loss since August. Losses in oil producers and telecoms offset gains after the House of Representatives passed a budget deal.
Adobe Systems climbed 12 per cent to $60.37 as it attracted more subscribers to its online software in the fourth quarter than some analysts had predicted, adding to evidence it is reducing its dependence on the slumping PC market.
Cement-maker Texas Industries surged 10 per cent to $64.57, as the owners of the Dallas-based company were said to be working with Citigroup to find a buyer. – (Additional reporting: Bloomberg.)
