AIRLINK 62.48 Increased By ▲ 2.05 (3.39%)
BOP 5.36 Increased By ▲ 0.01 (0.19%)
CNERGY 4.58 Decreased By ▼ -0.02 (-0.43%)
DFML 15.50 Increased By ▲ 0.66 (4.45%)
DGKC 66.40 Increased By ▲ 1.60 (2.47%)
FCCL 17.59 Increased By ▲ 0.73 (4.33%)
FFBL 27.70 Increased By ▲ 2.95 (11.92%)
FFL 9.27 Increased By ▲ 0.21 (2.32%)
GGL 10.06 Increased By ▲ 0.10 (1%)
HBL 105.70 Increased By ▲ 1.49 (1.43%)
HUBC 122.30 Increased By ▲ 4.78 (4.07%)
HUMNL 6.60 Increased By ▲ 0.06 (0.92%)
KEL 4.50 Decreased By ▼ -0.05 (-1.1%)
KOSM 4.48 Decreased By ▼ -0.09 (-1.97%)
MLCF 36.20 Increased By ▲ 0.79 (2.23%)
OGDC 122.92 Increased By ▲ 0.53 (0.43%)
PAEL 23.00 Increased By ▲ 1.09 (4.97%)
PIAA 29.34 Increased By ▲ 2.05 (7.51%)
PIBTL 5.80 Decreased By ▼ -0.14 (-2.36%)
PPL 107.50 Increased By ▲ 0.13 (0.12%)
PRL 27.25 Increased By ▲ 0.74 (2.79%)
PTC 18.07 Increased By ▲ 1.97 (12.24%)
SEARL 53.00 Decreased By ▼ -0.63 (-1.17%)
SNGP 63.21 Increased By ▲ 2.01 (3.28%)
SSGC 10.80 Increased By ▲ 0.05 (0.47%)
TELE 9.20 Increased By ▲ 0.71 (8.36%)
TPLP 11.44 Increased By ▲ 0.86 (8.13%)
TRG 70.86 Increased By ▲ 0.95 (1.36%)
UNITY 23.62 Increased By ▲ 0.11 (0.47%)
WTL 1.28 No Change ▼ 0.00 (0%)
BR100 6,944 Increased By 65.8 (0.96%)
BR30 22,827 Increased By 258.6 (1.15%)
KSE100 67,142 Increased By 594.3 (0.89%)
KSE30 22,090 Increased By 175.1 (0.8%)

 LONDON: European equities rose on Wednesday as upbeat company results and impressive overnight gains on Wall Street overshadowed steep losses in Tokyo, which was hit after Moody's downgraded Japan's debt.

London's benchmark FTSE 100 index of leading shares added 0.17 percent to 5,138.10 points in late morning deals and the Paris CAC 40 gained 0.62 percent to 3,103.56 points.

Frankfurt's DAX 30 index jumped 1.02 percent to 5,588.76 points despite news of falling German business confidence.

"While we have modest gains in some European indices this morning, these would have been bigger without Moody's downgrade on Japanese government debt," said David Morrison, an analyst at traders GFT.

"Overall, investors are reducing their equity holdings as they are wary of being too exposed" before a meeting of central bank heads on Friday, he said.

Wall Street had rallied on Tuesday by almost three percent on growing hopes that the Fed would take more aggressive easing measures to kick-start a sluggish economy.

But Tokyo tumbled on Wednesday as a downgrade of Japanese sovereign debt and banks by ratings agency Moody's soured sentiment. The benchmark Nikkei-225 index slumped 1.07 percent to finish at 8,639.61 points.

Other Asian markets dropped, with Hong Kong shedding 2.06 percent, as global economic worries loomed large.

But European investor sentiment was boosted after London-listed global mining giant BHP Billiton revealed that full-year net profit almost doubled to a mammoth US$23.6 billion, thanks to robust demand for raw materials from China and India.

Elsewhere, marketing giant WPP announced that first-half profits jumped 53 percent, boosted by strong growth in Asia, Latin America and Britain, despite the uncertain economic outlook and recent market turmoil.

In London deals, BHP's share price rose 0.77 percent to 1,904.50 pence and WPP soared 5.17 percent to 610 pence.

"Despite the economic gloom, we are seeing companies reporting earnings that are growing and beating analyst expectations -- although these are mainly from growth in international emerging markets and not through domestic demand," said Spreadex trader Jordan Lambert.

"As further (economic) indicators substantiate a forthcoming recession in the developed world, this will adversely impact emerging economies and companies will therefore see declining growth and poorer results within the next four quarters."

German business confidence fell sharply this month, the Ifo economic research institute said on Wednesday as it released the latest in a series of bleak indicators for the eurozone economy.

The monthly Ifo business climate index plunged to 108.7 points from 112.9 points in July, underscoring a sharp slowdown seen also in eurozone consumer confidence on Tuesday.

Looking ahead, US Fed chairman Ben Bernanke will give a key speech on Friday amid speculation that the central bank chief may outline fresh steps to stimulate the ailing US economy.

 

Copyright AFP (Agence France-Presse), 2011

 

Comments

Comments are closed.