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Markets

European stocks muted before Yellen speech

Published March 29, 2016 Updated March 29, 2016 04:49pm

imageLONDON: European stock markets were little changed Tuesday as trading resumed after the long Easter holiday weekend, with attention turning to a speech by US Federal Reserve chief Janet Yellen.

Asian markets mostly retreated after a similar pause in trading.

Around 1000 GMT, London's benchmark FTSE 100 index was down 0.1 percent compared with Thursday's close.

In the eurozone, Frankfurt's DAX 30 fell 0.3 percent and the Paris CAC 40 won 0.3 percent.

The euro fell to $1.1185.

"European bourses have made a rather muted start to the week," said Mike van Dulken, head of research at traders Accendo Markets, adding that news of an Egyptian airliner being hijacked Tuesday had "negligible impact" on markets.

All eyes were on Yellen in the hope that she will shed some light on the Fed's thinking about its interest rate policy in her speech Tuesday in New York.

A string of easing measures from central banks around the world provided some much-needed support over March.

A recent series of strong US data -- including better-than-forecast fourth-quarter growth -- raised the prospect of a lift sometime soon, although disappointing inflation and consumer spending figures have dampened expectations once more.

In the eurozone, the ECB has launched a raft of policy measures to get credit flowing, most significantly a massive programme to buy public sector bonds to pump liquidity into the system.

ECB data Tuesday showed that growth of loans to the private sector in the euro area picked up modestly in February,

Investors are meanwhile "in wait-and-see mode ahead of Fed chair Janet Yellen's speech at the European market close with traders hoping for more clues on when the US central bank might next hike rates after mixed US data", said van Dulken.

Also on the agenda this week is the release Friday of a US jobs report that will give further insight into the state of the world's top economy.

London - FTSE 100: DOWN 0.1 percent at 6,100.20

Frankfurt - DAX 30: DOWN 0.3 percent at 9,825.13

Paris - CAC 40: UP 0.3 percent at 4,340.79

EURO STOXX 50: FLAT at 2,987.73

Tokyo - Nikkei 225: DOWN 0.2 percent at 17,103.56 (close)

Shanghai - Composite: DOWN 1.3 percent at 2,919.83 (close)

Hong Kong - Hang Seng: UP 0.1 percent at 20,366.30 (close)

New York - Dow: UP: 0.1 percent at 17,535.39 (close)

Euro/dollar: DOWN at $1.1185 from $1.1196 on Monday

Dollar/yen: UP at 113.73 yen from 113.45 yen

Copyright AFP (Agence France-Presse), 2016

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