European shares ended a three-session winning streak on Friday on the last full trading day of the year, as traders failed to find inspiration after gloomy economic data on both sides of the Atlantic amid thin volumes.
The pan-European Dow Jones STOXX 600 index fell 0.2 percent to 364.39, as telecom-equipment Alcatel-Lucent dropped 2.7 percent, Spanish conglomerate Grupo Ferrovial fell 2.6 percent and telecom giant BT Group slipped 2.2 percent.
The decline came as data showed a sharper-than-expected drop in US new-home sales and a second straight fall in British house prices, which followed Thursday's disappointing US durable-goods orders.
The figures, combined with continued jitters from the assassination of Pakistani opposition leader Benazir Bhutto, pushed up the euro, which climbed 0.7 percent against the dollar and touched a new record against the pound. The euro's strength hurts the competitiveness of European firms that export.
Among national indexes, the UK FTSE 100 index lost 0.3 percent at 6,676.90 and the French CAC-40 index finished a fraction of a point lower, at 5,627.25.
"Volume is reasonably low. It's very, very quiet," said Heino Ruland, strategist at consultancy FrankfurtFinanz.
Markets in London, Paris, Amsterdam and Brussels will have a half-session tomorrow, while the German and Swiss stock markets will be shut.
The German DAX 30 index ended a holiday-shortened trading session -- its last of the year -- with a gain of 0.4 percent to 8,067.32.
Leading the gains was sportswear maker Adidas, which closed up 2.6 percent, and Altana, up 2.7 percent.
The DAX 30 has outperformed the UK and the French equity markets this year, posting a gain of around 22 percent, while UK stocks have risen 4 percent and French stocks posted a gain of 1 percent.
Ruland said German stocks this year benefited from growing demand from emerging markets.
"It's a major beneficiary from globalization and has experienced strong demand from BRIC countries such as Brazil, China and India, which has resulted in above-average earnings growth for companies," he said.
In London, shares of HSBC Holdings traded down 0.6 percent. The Wall Street Journal reported that US and European banks -- including HSBC and Citigroup -- are considering sales of assets, from branches to entire business units.
Oil producers rose with crude futures holding above US$97 a barrel.
SELL-OFF: Investors expect tariff-driven volatility as the local boarse reopens today, while analysts say government support and solid fundamentals would steady sentiment Local investors are bracing for a sharp market downturn today as the nation’s financial markets resume trading following a two-day closure for national holidays before the weekend, with sentiment rattled by US President Donald Trump’s sweeping tariff announcement. Trump’s unveiling of new “reciprocal tariffs” on Wednesday triggered a sell-off in global markets, with the FTSE Taiwan Index Futures — a benchmark for Taiwanese equities traded in Singapore — tumbling 9.2 percent over the past two sessions. Meanwhile, the American depositary receipts (ADRs) of Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the most heavily weighted stock on the TAIEX, plunged 13.8 percent in
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TARIFFS: The global ‘panic atmosphere remains strong,’ and foreign investors have continued to sell their holdings since the start of the year, the Ministry of Finance said The government yesterday authorized the activation of its NT$500 billion (US$15.15 billion) National Stabilization Fund (NSF) to prop up the local stock market after two days of sharp falls in reaction to US President Donald Trump’s new import tariffs. The Ministry of Finance said in a statement after the market close that the steering committee of the fund had been given the go-ahead to intervene in the market to bolster Taiwanese shares in a time of crisis. The fund has been authorized to use its assets “to carry out market stabilization tasks as appropriate to maintain the stability of Taiwan’s
STEEP DECLINE: Yesterday’s drop was the third-steepest in its history, the steepest being Monday’s drop in the wake of the tariff announcement on Wednesday last week Taiwanese stocks continued their heavy sell-off yesterday, as concerns over US tariffs and unwinding of leveraged bets weighed on the market. The benchmark TAIEX plunged 1,068.19 points, or 5.79 percent, to 17,391.76, notching the biggest drop among Asian peers as it hit a 15-month low. The decline came even after the government on late Tuesday authorized the NT$500 billion (US$15.2 billion) National Stabilization Fund (國安基金) to step in to buoy the market amid investors’ worries over tariffs imposed by US President Donald Trump. Yesterday’s decline was the third-steepest in its history, trailing only the declines of 2,065.87 points on Monday and
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