European and Asian Stocks Edge Higher
European and Asian stocks started off the week in positive territory Monday, amid quiet trading as the U.S. markets were closed for Martin Luther King Day.
In Europe, Deutsche Boerse’s takeover battle for the London Stock Exchange dominated the day, with shares in the German company jumping in Frankfurt after two of its shareholders voiced opposition to the plan.
Otherwise, dealers said many markets were taking advantage of the U.S. long weekend to take a breather ahead of a slew of corporate results expected as U.S. markets reopen today.
Traders said global markets were also watching oil prices, reflecting concerns that rising violence in Iraq could push crude prices upward, resulting in another wave of equity selling.
With crude futures at their highest since the end of November, oil prices looked for direction Monday on alternative markets. London Brent crude oil rose 7 cents to $45.03 a barrel. In New York trading Friday, light crude rose 34 cents to $48.38 a barrel.
The U.S. dollar opened the week with minor gains on the euro, which was at $1.307 in late trading, down from $1.311 on Friday.
The dollar fell to an all-time low at the end of December against the euro, which rocketed up from about $1.20 in September to a high of $1.366 on ongoing concerns over the U.S. trade and budget deficits.
The dollar was also up slightly against the Japanese yen, buying 101.93 yen, up from 101.91 yen Friday. The British pound was quoted at $1.860, down from $1.871.
In other global market highlights:
* In Frankfurt, the DAX index of blue-chip stocks closed up 0.3% at 4,245.51. Deutsche Boerse, Germany’s stock exchange operator, surged 4.1% in what dealers described as a relief rally on doubts that Deutsche Boerse would push ahead with plans to buy the rival London Stock Exchange. Two of Deutsche Boerse shareholders, a British and an American fund, voiced opposition to the plans.
* In London, shares in the London Stock Exchange, which is holding parallel takeover talks with Euronext, closed down 0.9%. Euronext operates the Paris, Amsterdam, Brussels and Lisbon stock exchanges.
London’s FTSE-100 share index closed 0.5% higher at 4,846.7.
* In Paris, the CAC-40 index closed up 0.7% at 3,881.44, ahead of the unveiling today of Airbus’ flagship A380, the plane on which the company is betting its newfound status as the world’s leading jet maker. Shares in European Aeronautic Defense & Space Co., which owns 80% of Airbus, rose 2.3%.
Defense electronics group Thales was up 0.4% after it said it expected increases in both revenue and earnings this year.
* Tokyo’s benchmark Nikkei stock average of 225 selected issues gained 48.71 points, or 0.43%, to 11,487.10. On Friday, the index rose 80.17 points or 0.71%.
The Nikkei rose as investors snapped up issues related to the domestic economy, such as construction and banks, buoyed by Friday’s release of strong November machinery orders data -- regarded as a leading indicator of corporate capital spending several months ahead.
Construction giants Kajima and Maeda rose, as did selected telecoms, including KDDI.
* Australian shares snapped a four-session losing streak to close higher, led by gains in mining stocks. The benchmark S&P;/ASX 200 index added 15.3 points, or 0.4%, to a record closing high of 4,076.90.
* In Hong Kong, the blue-chip Hang Seng index rose 126.87 points, or 0.94%, to 13,621.65. On Friday, the index had lost 0.57%.
Bargain hunters stepped into the market after recent losses, brokers said.
Market sentiment also was boosted by Friday’s gains on Wall Street, where the Dow Jones industrial average rose 52.17 points, or 0.5%, to 10,558; the tech-laden Nasdaq composite index climbed 17.35 points, or 0.84%, to 2,087.91; and the Standard & Poor’s 500 index added 7.07 points to 1,184.52 .
