Thursday, 27 March 2014

European Shares Mixed As Ukraine Concerns Subside

The ECB will be dogmatic about trying to talk down the euro. But unless these words are followed up by action we will not see the euro falling much. The euro has good support around $1.3750, while many will look to sell it at$1.3880 (the high struck earlier this week).

European shares commenced the week on the positive note after Crimea voted to join Russia on Sunday’s referendum. However, the relief was short -lived. In the next two sessions, shares entered the red zone, pushing major indices well below recent highs as the Fed decision to cut its stimulus programme put another drag on European equities. On Thursday and Friday, stocks managed to recoup earlier losses, rallying the most in several months amid ideas that sanctions from the West will not create an essential impact on the global economy.

The largest European index, which embraces 600 companies, climbed 0.64% over the week after sliding almost 3% in the preceding week. Other indices-German DAX and U.K. FTSE 100 were mixed. German companies like Commerzbank and BMW pushed the DAX higher, soaring 10.76% and 11.53% on a weekly basis. The DAX advanced 1.77%.

Meanwhile, U.K. stocks’ performance was less impressive, with Cairn Energy and Ladbrokes slumping 19.65% and 16.19%. The FTSE 100 dropped 0.17% thus adding to the previous week’s loss of 2.4%. Cairn Energy was the top laggard last week on news that the firm suspended a share buyback, citing a tax dispute in India.

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