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European equities markets touched a three-and-a-half-year high on Monday, fuelled by strength in the oil and chemicals sectors. Domestic stocks led the rest of the Japanese market lower on Monday, as investors continued to question the high valuations in sectors such as banking and insurance.
European stocks were driven lower on Tuesday after disappointing guidance from the UK’s Vodafone. Vodafone’s sharp fall ensured the decline on London’s FTSE 100 outpaced other European indices. It slid 0.6 per cent to 5,436.3.
Interim results from Vodafone showed better-than-expected profits but the mobile phone group’s outlook statement struck a more bearish tone. Vodafone announced revenue up to £18.3bn for the six months to September 30 from £16.7bn in the same period a year ago. Interim pre-tax profits fell to £4.107bn from £4.540bn. Vodafone said it expected full-year mobile revenue growth to March 31 2006 in the middle of the 6 per cent to 9 per cent range previously indicated. The share buyback programme for the current financial year is expected to reach £6.5bn.
London’s leading equities markets lost ground on Wednesday, as news of flat interim profits at Sainsbury failed to impress investors and the oil sector weakened after crude prices hit a four-month low. European equity markets were lower on Wednesday as weakness in oil and mining stocks and further declines for telecoms stocks added to the effects of a late sell-off on Wall Street.
The continued strong performance of internet group Google provided a stark contrast to the deepening crisis at General Motors on Thursday, as shares in the search engine powered above $400. After a strong start, European equity markets extended their gains by mid-morning on Friday, helped by strong overnight gains on Wall Street and Tokyo and a further retreat in crude oil prices.
The Nikkei 225 stock average on Friday hit its highest level since Junichiro Koizumi became prime minister in April 2001, with a strong performance by both exporters and domestically-focused stocks.
This report was compiled by Valletta Fund Management.
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