Europe Stay updated with Business News, Pakistan news, Current world news and latest world news with Business Recorder.. http://www.brecorder.com/markets/equity/europe.html Tue, 27 Jan 2015 18:54:20 +0000 SRA Framework 2.0 en-gb Greek fears, US data dampen European stocks http://www.brecorder.com/markets/equity/europe/220215-greek-fears-us-data-dampen-european-stocks.html http://www.brecorder.com/markets/equity/europe/220215-greek-fears-us-data-dampen-european-stocks.html imageLONDON: Anxiety over Greece's new anti-austerity leadership and unexpectedly poor US performance data weighed down European stock markets on Tuesday, analysts said.

Frankfurt's DAX 30 index sank 1.57 percent to close at 10,628.58 points, while in Paris the CAC 40 shed 1.09 percent to 4,624.21 points.

London's benchmark FTSE 100 index of top companies edged down 0.6 percent to end the day at 6,811.61 points, as investors also digested data showing Britain's economic growth slowed to 0.5 percent in the fourth quarter of 2014.

The Athens stock market plunged more than six percent before recovering slightly at the close as investors fretted over whether the new radical left government will renege on Greece's international bailout.

The main Athex index had tumbled 3.2 percent the previous day on news that anti-austerity party Syriza had won the Greek election.

"Gravity took hold... after several days of huge gains inspired by the beginning of a quantitative easing program by the European Central Bank," said Jasper Lawler, an analyst at CMC Markets UK.

"Banking stocks led the declines in a delayed reaction to the risk posed by their Greek counterparts on a possible Grexit," he added, referring to the spectre of Greece being forced to leave the eurozone.

Shares in Germany's Deutsche Bank plunged 3.39 percent, while in France Societe Generale lost 2.3 percent and Britain's RBS was off 1.77 percent.

New Greek Prime Minister Alexis Tsipras unveiled his anti-austerity coalition administration, bringing together his radical left-wing party with a small party on the nationalist right, after a stunning election win that sent shockwaves through Europe.

The appointment of radical left-wing economist Yanis Varoufakis as his finance minister was seen as a signal that the new government will take a hard line in haggling over Greece's 240 billion euro ($269 billion) EU-IMF package.

Tsipras declared Sunday that Greece is "leaving behind disastrous austerity" and the so-called troika of creditors "is finished", in reference to the country's international lenders the European Union, the International Monetary Fund and the European Central Bank.

Syriza are the first anti-austerity party to govern in Europe, but they fell two seats short of a 151-seat majority in parliament and were thus forced to forge the coalition with the small nationalist Independent Greeks (ANEL) party.

- 'Unforeseen development' -

In New York, the Dow slumped more than two percent in mid-morning trade following a raft of mostly weak earnings reports from big companies and a surprising drop in durable goods orders.

Near 1600 GMT, the Dow Jones Industrial Average stood at 17,320.29, down 2.03 percent.

The broad-based S&P 500 sank 1.60 percent to 2,024.24, while the tech-rich Nasdaq Composite Index plummeted 2.09 percent to 4,671.83.

New orders for long-lasting industrial goods fell 3.4 percent in December, signalling some persistent weakness in the manufacturing sector, according to Commerce Department data.

"A Greek election was supposed to cause market ructions but as usual it was an entirely unforeseen development -- namely a slump in US economic performance -- that has created greater excitement," said Chris Beauchamp, a market analyst with IG.

In foreign exchange activity on Tuesday, the European single currency bounced to $1.1368, having hit Monday an 11-year low of $1.1098 on fears that Greece could leave the eurozone.

Copyright AFP (Agence France-Presse), 2015

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s.rs96@yahoo.com (Shoaib-ur-Rehman Siddiqui) Europe Tue, 27 Jan 2015 17:58:16 +0000
Stocks fall as US earnings disappoint; euro up vs dollar http://www.brecorder.com/markets/equity/europe/220196-stocks-fall-as-us-earnings-disappoint;-euro-up-vs-dollar.html http://www.brecorder.com/markets/equity/europe/220196-stocks-fall-as-us-earnings-disappoint;-euro-up-vs-dollar.html imageLONDON: Global stock indexes fell on Tuesday following disappointing earnings results and weaker-than-expected US durable goods orders, while the euro rose for a second day against the dollar.

All three major U.S. stock indexes were down around 2 percent in early trading.

Shares of Microsoft and Caterpillar weighed on U.S. stocks. Microsoft's results showed the main engine of its historic earnings power, selling Windows and Office software to big businesses, is waning. Caterpillar's quarterly profit came in below analysts' expectations and it warned that lower oil prices will hurt 2015 results.

"U.S. equities could come under pressure as investors ratchet down their growth estimates for the U.S. economy," said Brian Jacobsen, chief portfolio strategist at Wells Fargo Funds Management in Menomonee Falls, Wisconsin.

"There was just too much hype about the U.S. economy having risen into a new and higher growth channel. We're still stumbling along."

Data showing an unexpected decline in U.S. durable goods orders added to the weaker tone for stocks. Offsetting some of the bearish news was a U.S. consumer confidence reading that was the highest since 2007.

Investors also were cautious ahead of the first policy meeting of the U.S. Federal Reserve this year. They will be keen to hear the Fed's response to policy easing by global central banks such as the European Central Bank, whose long-awaited plan to buy bonds to revive the flagging euro zone has propelled bond yields and the euro to multi-year lows and stocks to multi-year highs.

The Dow Jones industrial average fell 362.28 points, or 2.05 percent, at 17,316.42. The Standard & Poor's 500 Index was down 33.18 points, or 1.61 percent, at 2,023.91. The Nasdaq Composite Index was down 99.71 points, or 2.09 percent, at 4,672.06.

A snow storm engulfing New York kept many investment banks and fund managers on skeleton staff, though the main exchanges were open.

MSCI's global share index was down 0.6 percent, while an index of European shares fell 1.1 percent.

Russia was also in the spotlight after a cut to its credit rating dealt a further blow to the rouble, though by Tuesday the currency had regained some ground against the dollar.

The cost of insuring exposure to Russia's debt rose after Standard & Poor's cut Russia's sovereign credit rating to "junk" late on Monday, citing weakened economic growth prospects and Western sanctions over Ukraine.

The euro rose for a second day against the dollar.

The single currency climbed to $1.1369, up 1.2 percent on the day, moving further away from an 11-year low of $1.1098 hit early on Monday after it became clear that Greece had voted in a new anti-bailout government.

Investors widely expect the Federal Reserve to acknowledge the uncertain global outlook and stick to its promise to be patient on tightening. Yet its timetable remains for higher rates by mid-year, a trajectory that presages further broad-based gains for the dollar.

U.S. Treasuries prices were higher, with yields on benchmark 10-year note dipping to 1.75 percent.

In commodity markets, oil prices were up slightly, along with gold. Brent futures were trading at $48.37 a barrel, up 21 cents, and U.S. crude was up 32 cents at $45.47 a barrel. Spot gold was up 0.5 percent at $1,287.30 an ounce.

Copyright Reuters, 2015

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imad_kueconomist@yahoo.com (Imaduddin) Europe Tue, 27 Jan 2015 16:57:19 +0000
FTSE falls from four-month high; commodities shares weigh http://www.brecorder.com/markets/equity/europe/220193-ftse-falls-from-four-month-high;-commodities-shares-weigh.html http://www.brecorder.com/markets/equity/europe/220193-ftse-falls-from-four-month-high;-commodities-shares-weigh.html imageLONDON: Britain's top equity index fell on Tuesday after rising for eight straight sessions to a four-month high, with commodities shares losing ground on weaker metals and oil prices.

Mid-cap oil producer Afren plunged 66 percent after saying it was in talks with its largest bondholders over its liquidity and funding needs.

The blue-chip FTSE 100 index was down 1 percent at 6,781.81 points by 1550 GMT, after rising for more than a week mostly on expectations the European Central Bank (ECB) would begin buying government bonds to stimulate the euro zone economy. The ECB announced such a programme late last week.

The UK Oil and Gas index fell 1.2 percent, as a stronger dollar led Brent oil prices to give up early gains and turn negative.

"Oil prices are causing a great concern for some investors. People are getting into the mindset that there isn't going to be a quick-fix," David Battersby, investment manager at Redmayne-Bentley, said, referring to the recent slump in crude prices.

Miners also slipped as copper prices fell 1.6 percent on concerns of slowing growth in top consumer China, weak U.S. business investment and rising metal inventories. The UK mining index fell nearly 1 percent.

Banks also slipped, with the sector index falling 1.5 percent and banks such as Barclays, Royal Bank of Scotland and HSBC dropping 0.8 to 2.2 percent, with traders citing news of UK banks facing hefty credit card claims as one of the reasons for their weakness.

Around two million Britons who may have been mis-sold insurance to cover events such as credit card fraud will be asked to vote for a scheme that could cost top high street banks hundreds of millions of pounds in compensation.

But some analysts were positive on the broader market's prospects on technical grounds.

"The FTSE is seeing some profit-taking ... However, (it) is flirting with levels seen last year. Technically, the charts point for an upside break towards the 7,000 level," said Jawaid Afsar, a trader at Securequity.

The market also reacted to UK growth data. Traders said the FTSE 100 initially trimmed losses on data showing the country's gross domestic product slowed more than expected in the last quarter of 2014, raising hopes interest rates would stay low for a longer period.

However, concerns the slow pace of economic recovery in the rest of Europe, Britain's key trading partner, could hurt growth in 2015 prompted some investors to become cautious, they added.

On the positive side, Centrica climbed 4.2 percent to 283.10 pence after Credit Suisse raised its stance on the stock to "outperform" from "neutral" and increased its target price to 310 pence from 290 pence.

Copyright Reuters, 2015

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imad_kueconomist@yahoo.com (Imaduddin) Europe Tue, 27 Jan 2015 16:53:56 +0000
Greek fears send European stocks sliding again http://www.brecorder.com/markets/equity/europe/220182-greek-fears-send-european-stocks-sliding-again.html http://www.brecorder.com/markets/equity/europe/220182-greek-fears-send-european-stocks-sliding-again.html imageLONDON: Intensifying anxiety over Greece sent European stock markets lower Tuesday, with the new government set on a collision course with creditors over plans to renegotiate its enormous bailout, analysts said.

London's benchmark FTSE 100 index of top companies fell 0.99 percent to 6,784.61 points in mid-afternoon trading, as investors also digested data showing Britain's economic growth slowed to 0.5 percent in the fourth quarter of 2014.

Elsewhere, Frankfurt's DAX 30 lost 1.69 percent to 10,616 and the CAC 40 in Paris was off 1.22 percent to 4,617.86 points compared with Monday's close.

The Athens stock market plunged more than six percent on Tuesday, having tumbled 3.2 percent the previous day on news that anti-austerity party Syriza had won the Greek election.

The main Athex index opened down 6.39 percent, reaching a low of 761 points, before recovering slightly to 776 points by 1400 GMT, or 4.59 percent lower than Monday's close.

New Greek Prime Minister Alexis Tsipras unveiled his anti-austerity coalition administration, bringing together his radical left-wing party with a small party on the nationalist right, after a stunning election win that sent shockwaves through Europe.

The appointment of radical left-wing economist Yanis Varoufakis as his finance minister was seen as a signal that the new government will take a hard line in haggling over Greece's 240 billion euro ($269 billion) EU-IMF package.

Tsipras declared Sunday that Greece is "leaving behind disastrous austerity" and the so-called troika of creditors "is finished", in reference to the country's international lenders the European Union, the International Monetary Fund and the European Central Bank.

"Syriza is already delivering on some of its promises by streamlining the Greek government to a 10-minister cabinet," said analyst Connor Campbell of Spreadex trading firm.

"Provocative finance and foreign minister appointments showed that, for now, Syriza is not going to back down from the radical reforms the party want to see in Greece, even if this sets them on a collision course with the ECB, the IMF and the European Commission," he said.

Think tank Capital Economics sounded a reassuring note, however, saying: "Syriza's victory... may increase the influence of anti-austerity parties elsewhere in the eurozone, most notably Podemos in Spain. But resistance from Germany seems set to limit European authorities' ability to loosen fiscal restraints."

Syriza are the first anti-austerity party to govern in Europe, but they fell two seats short of a 151-seat majority in parliament and were thus forced to forge a coalition with the small nationalist Independent Greeks (ANEL) party.

In New York, the Dow opened 270 points lower following several disappointing earnings reports from big companies and a surprising drop in durable goods orders.

Five minutes into trade, the Dow Jones Industrial Average stood at 17,408.69, down 270.01 points (1.53 percent).

The broad-based S&P 500 dropped 24.77 (1.20 percent) to 2,032.32, while the tech-rich Nasdaq Composite Index fell 75.03 (1.57 percent) to 4,696.74.

New orders for long-lasting industrial goods fell 3.4 percent in December, signalling some persistent weakness in the manufacturing sector, according to Commerce Department data.

In foreign exchange activity on Tuesday, the European single currency rose to $1.1331 in London deals on Tuesday, having hit Monday an 11-year low of $1.1098 on fears that Greece could leave the eurozone.

Most Asian stock markets climbed Tuesday on hopes Greece's new government will be able to negotiate a bailout deal with the EU and IMF that will prevent it from leaving the eurozone.

Copyright AFP (Agence France-Presse), 2015

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imad_kueconomist@yahoo.com (Imaduddin) Europe Tue, 27 Jan 2015 16:03:19 +0000
European stocks driven back by Greek worries, weak corporate results http://www.brecorder.com/markets/equity/europe/220161-european-stocks-driven-back-by-greek-worries-weak-corporate-results.html http://www.brecorder.com/markets/equity/europe/220161-european-stocks-driven-back-by-greek-worries-weak-corporate-results.html imageLONDON: Renewed concern over Greece and weak results at companies such as Siemens and Philips halted a winning run on European stock markets on Tuesday.

The pan-European FTSEurofirst 300 index, which had risen for the past eight sessions, retreated 1 percent to 1,473.54 points going into the close of the trading day.

The euro zone's blue-chip Euro STOXX 50 index also declined 1.4 percent after a similar eight-day winning streak. Those gains were ignited by the European Central Bank's plans to buy government bonds to spur growth in the struggling euro zone economy.

Greek shares underperformed for the second day in a row. The benchmark Athens ATG equity index fell 4.7 percent and Greece's borrowing costs rose.

Investors were worried Greece's new anti-bailout government would clash with the European Union over the terms of Greek's bailout. Syriza, the party that won Greece's election on Sunday, opposes those terms.

Greek banks slid to a record low. Bank of Piraeus and Alpha Bank lost around a fifth of their stock market value. National Bank of Greece fell 14.2 percent. Fears that investors could move deposits out of Greek banks hit the sector.

"I'm staying away from the financials and the banks at the moment, because they're in the firing line from any fallout from Greece," said Mirabaud Securities' European equity sales executive Rupert Baker.

SWISS MARKET OUTPERFORMS

Some weak updates from leading companies also weighed on European equities.

Siemens fell 2.4 percent after the German company said quarterly profit from its industrial units fell 4 percent.

Dutch healthcare and lighting company Philips slid 5.2 percent after Philips cut its 2016 sales and earnings estimates.

However, Zurich's SMI equity index rose 0.6 percent after the Swiss franc sank below levels last seen when authorities removed a cap on the franc's value against the euro earlier this month. Traders speculated the Swiss National Bank was intervening on Tuesday to weaken the currency.

Gary Paulin, co-founder of equity brokerage Aviate Global, backing buying European shares, partly due to the support for the stock market arising from the ECB's government bond-buying programme.

Clairinvest fund manager Ion-Marc Valahu was more cautious.

"I am now using rallies to reduce equity exposure," he said.

Copyright Reuters, 2015

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imad_kueconomist@yahoo.com (Imaduddin) Europe Tue, 27 Jan 2015 15:15:32 +0000
Airlines help Britain's FTSE hold steady at 4-month high http://www.brecorder.com/markets/equity/europe/220124-airlines-help-britains-ftse-hold-steady-at-4-month-high.html http://www.brecorder.com/markets/equity/europe/220124-airlines-help-britains-ftse-hold-steady-at-4-month-high.html imageLONDON: Britain's top share index held steady around four-month highs on Tuesday, supported by strong gains for airlines, although its momentum was stalled by renewed weakness in energy stocks.

Top gainer was budget airline easyJet, up 4.6 percent following a trading update in which it said first-half seasonal losses would shrink this year.

Europe's second-largest low-cost airline said losses fell after it added seats on successful routes and attracted more business passengers.

International Consolidated Airlines Group (IAG) rose 2.2 percent after the board of Irish airline Aer Lingus has recommended an improved 1.36 billion euro ($1.5 billion) takeover offer from the owner of British Airways.

The airlines group is up around 80 percent since the middle of August, while easyJet has rallied around 50 percent.

"Airlines have had a great rally and great momentum behind them," Zeg Choudhry, managing director of LONTRAD, said.

"The numbers for easyJet are good, as a small increase in revenues per seat are a massive boost to their underlying figures, and the market sees IAG's deal with Aer Lingus as very positive. But these stocks look quite high now."

The FTSE 100 was flat in percentage terms at 6,851.25 by 0842 GMT, after touching a new 4 month high at 6,864.97.

Taking the most points off the index were energy stocks, which gave away some of the gains made in a late rally on Monday.

Oil gave up early gains with Brent futures slipping below $48 on Tuesday as a stronger dollar weighed, offsetting comments from producer group OPEC that prices may have found a floor.

The energy sector trimmed 2.6 points off the FTSE 100 index.

Among the top individual fallers, Dixons Carphone fell 4.1 percent after being cut to "underweight" from "equal weight" by Morgan Stanley.

Copyright Reuters, 2015

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imad_kueconomist@yahoo.com (Imaduddin) Europe Tue, 27 Jan 2015 13:06:16 +0000
Mixed earnings, Greek jitters fuel market caution http://www.brecorder.com/markets/equity/europe/220117-mixed-earnings-greek-jitters-fuel-market-caution.html http://www.brecorder.com/markets/equity/europe/220117-mixed-earnings-greek-jitters-fuel-market-caution.html imageLONDON: The euro rose and shares slipped in Europe on Tuesday as mixed corporate earnings and concerns over Greece kept investors cautious ahead of a busy week which will include the first policy meeting of the U.S. Federal Reserve this year.

Russian markets were also jittery after a cut to the country's sovereign credit rating.

Investors will be keen to hear the Fed's response to the recent policy easing by global central banks such as the European Central Bank, whose long-awaited plan to buy bonds to revive the flagging euro-zone economy has propelled bond yields and the euro to multi-year lows and stocks to multi-year highs.

Although core bond yields held near those lows, lower-rated yields edged higher after Europe signalled it would not yield to a new Greek government's demands for debt forgiveness, though it showed a willingness to give Athens more time to pay its debts. Top Greek shares were down 2.7 percent.

Credit markets were also jittery beyond the eurozone, with the cost of insuring exposure to Russia's debt up after Standard & Poor's cut Russia's sovereign credit rating to "junk" late on Monday, citing weakened economic growth prospects and Western sanctions.

"A lot of investors have been taken aback by the speed of macroeconomic adjustments," said Sean Darby, global equity strategist at Jefferies. "This is not the type of environment they like to invest in."

The pan-European FTSEurofirst 300 equity index was down 0.2 percent. European heavyweights Philips and Siemens were among those reporting disappointing earnings or outlook statements, while in the U.S. Microsoft Corp reported a fall in quarterly profit.

"Today's earnings show that global demand remains the big issue. Companies can take advantage of low rates, they can buy back stock but they cannot create demand and they will get hurt by global currency wars," said Lex Van Dam, hedge-fund manager at Hampstead Capital.

Most Asian share markets firmed on Tuesday. The euro clung to rare gains, up 0.9 percent to trade at $1.13455, taking it further from an 11-year trough of $1.1098 hit on Monday.

Investors widely expect the Fed to acknowledge the uncertain global outlook and stick to its promise to be patient on tightening. Yet its timetable remains for lift-off on rates by mid-year, a trajectory that presages further broad-based gains for the dollar.

Japan's Nikkei gained 1.4 percent, while Australia's main index added 0.8 percent. Other moves were mostly modest and MSCI's broadest index of Asia-Pacific shares outside Japan was flat on the day.

Chinese markets continued their recent erratic path and the Shanghai index slipped 2.2 percent.

On Wall Street, the Dow had ended Monday up a bare 0.03 percent, while the S&P 500 gained 0.26 percent and the Nasdaq 0.29 percent.

A snow storm engulfing New York is expected to keep many investment banks and fund managers on skeleton staff, though the main exchanges all plan to open as usual on Tuesday.

In commodity markets, U.S. crude was quoted 17 cents lower at $44.97. Brent fell 21 cents to $47.95.

Copyright Reuters, 2015

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imad_kueconomist@yahoo.com (Imaduddin) Europe Tue, 27 Jan 2015 12:56:59 +0000
European equity rally halted by Greece and weak corporate figures http://www.brecorder.com/markets/equity/europe/220101-european-equity-rally-halted-by-greece-and-weak-corporate-figures.html http://www.brecorder.com/markets/equity/europe/220101-european-equity-rally-halted-by-greece-and-weak-corporate-figures.html imageLONDON: Renewed concern over Greece and weak results at companies such as Siemens and Philips halted a winning run on European stock markets on Tuesday.

The pan-European FTSEurofirst 300 index, which had risen for the last eight sessions, slipped back by 0.3 percent to 1,484.07 points going into the middle of the trading session.

The euro zone's blue-chip Euro STOXX 50 index also declined 0.7 percent, retreating after a similar eight-day winning streak. Those gains were ignited by the European Central Bank's plans to buy back government bonds to spur growth in the struggling euro zone economy.

Greek shares underperformed for the second day in a row. The benchmark Athens ATG equity index fell 2.6 percent and Greece's borrowing costs rose.

Investors were worried Greece's new anti-bailout government would clash with the European Union over the terms of Greek's bailout. Syriza, the party that won Greece's election on Sunday, opposes those terms, which were imposed by the ECB, the EU and the International Monetary Fund.

Greek banks slid to a record low, with National Bank of Greece slumping over 10 percent. The STOXX Europe 600 Banking Index fell 1.4 percent.

"I'm staying away from the financials and the banks at the moment, because they're in the firing line from any fallout from Greece," said Mirabaud Securities' European equity sales executive Rupert Baker.

SWISS MARKET OUTPERFORMS

Some weak results from leading companies also weighed on European equities.

Siemens' shares fell 2.8 percent after the German company said quarterly profit from its industrial units fell 4 percent.

Dutch healthcare and lighting company Philips slid 5.7 percent after Philips cut its 2016 sales and earnings estimates.

"Today's earnings show that global demand remains the big issue," said Hampstead Capital LLP hedge fund manager Lex van Dam. "Companies can take advantage of low rates, they can buy back stock, but they cannot create demand."

However, the Swiss stock market managed to outperform.

Zurich's SMI equity index rose 0.6 percent after the Swiss franc sank below levels last seen when authorities removed a cap on the franc's value against the euro earlier this month. Traders speculated the Swiss National Bank was intervening on Tuesday to weaken the currency.

Today's European research round-up

Copyright Reuters, 2015

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imad_kueconomist@yahoo.com (Imaduddin) Europe Tue, 27 Jan 2015 12:36:49 +0000
FTSE retreats after eight days of gains; energy shares weigh http://www.brecorder.com/markets/equity/europe/220089-ftse-retreats-after-eight-days-of-gains;-energy-shares-weigh.html http://www.brecorder.com/markets/equity/europe/220089-ftse-retreats-after-eight-days-of-gains;-energy-shares-weigh.html imageLONDON: Britain's top equity index fell on Tuesday after rising for eight straight sessions to a four-month high, with energy shares losing ground as oil prices weakened and retailer Dixons Carphone slipped after a broker downgrade.

Mid-cap oil producer Afren slumped as much as 71 percent and was last down 57 percent, after saying it was in talks with its largest bondholders over its liquidity and funding needs.

The FTSE 100 index was led lower by Dixons, which fell 5.6 percent after Morgan Stanley cut its rating on the stock to "underweight" from "equal weight", saying the shares were significantly overvalued.

The index was down 0.4 percent at 6,822.15 points by 1056 GMT after rising continually for more than a week, mostly on expectations the European Central Bank would begin buying government bonds to stimulate the euro zone economy. The ECB announced such a programme late last week.

Energy shares also put pressure on the FTSE 100. The UK Oil and Gas index fell 1.1 percent, as a stronger dollar caused Brent oil prices to give up early gains and fall below $48 a barrel.

"The FTSE is seeing some profit-taking after a recent run higher, with lower oil prices putting pressure on the market," said Jawaid Afsar, a trader at Securequity. "However, the FTSE 100 is flirting with levels seen last year. Technically, the charts point for an upside break towards the 7,000 level."

The FTSE 100's losses were capped by expectations British interest rates will remain low, after data showed economic growth slowed more than expected in the fourth quarter of 2014.

In addition, budget airline easyJet rose 3.6 percent, the FTSE 100's biggest gain, after it said first-half seasonal losses would shrink this year.

International Consolidated Airlines Group, the owner of British Airways, rose 2.2 percent after the board of Irish airline Aer Lingus recommended accepting its 1.36 billion-euro ($1.5 billion) takeover offer.

The airlines group is up around 80 percent since the middle of August. EasyJet has rallied around 50 percent.

"Airlines have had a great rally and great momentum behind them," said Zeg Choudhry, managing director of LONTRAD. "The numbers for easyJet are good, as a small increase in revenues per seat are a massive boost to their underlying figures, and the market sees IAG's deal with Aer Lingus as very positive."

Copyright Reuters, 2015

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imad_kueconomist@yahoo.com (Imaduddin) Europe Tue, 27 Jan 2015 12:22:31 +0000
Airlines help Britain's FTSE hold steady at 4-month high http://www.brecorder.com/markets/equity/europe/220069-airlines-help-britains-ftse-hold-steady-at-4-month-high.html http://www.brecorder.com/markets/equity/europe/220069-airlines-help-britains-ftse-hold-steady-at-4-month-high.html imageLONDON: Britain's top share index held steady around four-month highs on Tuesday, supported by strong gains for airlines, although its momentum was stalled by renewed weakness in energy stocks.

Top gainer was budget airline easyJet, up 4.6 percent following a trading update in which it said first-half seasonal losses would shrink this year.

Europe's second-largest low-cost airline said losses fell after it added seats on successful routes and attracted more business passengers.

International Consolidated Airlines Group (IAG) rose 2.2 percent after the board of Irish airline Aer Lingus has recommended an improved 1.36 billion euro ($1.5 billion) takeover offer from the owner of British Airways.

The airlines group is up around 80 percent since the middle of August, while easyJet has rallied around 50 percent.

"Airlines have had a great rally and great momentum behind them," Zeg Choudhry, managing director of LONTRAD, said.

"The numbers for easyJet are good, as a small increase in revenues per seat are a massive boost to their underlying figures, and the market sees IAG's deal with Aer Lingus as very positive. But these stocks look quite high now."

The FTSE 100 was flat in percentage terms at 6,851.25 by 0842 GMT, after touching a new 4 month high at 6,864.97.

Taking the most points off the index were energy stocks, which gave away some of the gains made in a late rally on Monday.

Oil gave up early gains with Brent futures slipping below $48 on Tuesday as a stronger dollar weighed, offsetting comments from producer group OPEC that prices may have found a floor.

The energy sector trimmed 2.6 points off the FTSE 100 index.

Among the top individual fallers, Dixons Carphone fell 4.1 percent after being cut to "underweight" from "equal weight" by Morgan Stanley.

Copyright Reuters, 2015

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nasir_only4u@hotmail.com (Nasir Ahmed) Europe Tue, 27 Jan 2015 10:10:25 +0000