European market close mostly higher

Tuesday, 29. March 2016 18:14

Stock markets in Europe closed mostly higher despite pressure from sliding oil prices, which rallied for the last two months. The rise on the demand side is much slower than build up in supplies, while expected output freeze at January level is yet to be agreed by members of the OPEC and non-OPEC major suppliers such as Russia on April 17.

In Frankfurt, the DAX index edged up 0.37% to close at 9,887 points. Vonovia SE rose 2.43%, and Fresenius medical group added 1.65%, while Linde industrial group rose 1.33%. ProSiebenSat.1 media network gained 1.11%. Volkswagen AG dropped 1.57%, but the VW stock may be additionally hurt after the United States Federal Trade Commission decided to file a four-count legal complaint against German carmaker for falsely advertising that its diesel vehicles were environmentally friendly. Among other losers were banks, energy, and chemical companies.

The French CAC 40 index climbed up 0.85% to close at 4,366 points. Veolia Environment rose 2.80%, while the apparel company LVMH added 2.45%. Technip dropped 3.05%, and Crédit Agricole lost 1.21%.

Across La Manche, the FTSE 100 finished just 0.01% in the red, closing at 6,105 points. Estimated fall in basic material prices slammed mining companies: Glencore Plc sunk 5.40%, Anglo American Plc lost 4.33%, and Rio Tinto, Antofagasta and BHP Billiton followed, each losing over 3%. Shell and BP also fell over 1%. Sport Direct International rose 4.60%.

In Zurich, the SMI closed 0.28% higher at 7,797 points. SGS consumer group rose 1.73%, and Nestlé followed up 1.70%. CS banking group lost 2.65%, and Novartis fell 1.47%.

In Amsterdam, the AEX index rose 0.66%, the Austrian ATX index finished up 0.31%, and the Belgian BEL 20 added 0.40%. Milan's FTSE/MIB edged up 0.03%, and OMX indices across Europe were gaining except for the Danish OMX Copenhagen 20, which fell 0.36%.

The euro was 0.04% stronger against the U.S. dollar, and 0.10% compared to the Swiss franc, while losing 0.15% against the U.K. sterling by 6:13 p.m. CET.

Oil prices were falling throughout the day, and U.S. light West Texas Intermediate for may fell 3.41% to $38.08 a barrel, while Brent crude dropped 3.28% to $39.00 a barrel by 6:11 p.m. CET. The Organization of the Petroleum Exporting Countries reported its OPEC daily basket price of 13 crudes at $35.48 a barrel on Monday, up from $34.96 the previous trading day.

Related Links: Volkswagen AG
Breaking the News / ZR