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. Last Updated: 07/27/2016

European Exchanges Show Gains

LONDON -- Most European exchanges ended the day showing healthy gains Monday but the dollar made little headway, held back by jitters over the G-7 summit and a German central bank meeting, both this week.


"Until these key events are out of the way, nobody will want to take the dollar any higher," said a dealer at a Japanese bank in London.


The U.S. currency ended the European day at 108.93 yen, slightly down from the levels of late Friday.


On the London Metal Exchange, copper prices fell to 2 1/2 year lows of $1,795 a ton, with the market hit by fresh fears over Sumitomo, the Japanese trading house which lost $1.8 billion in unauthorized copper transactions over a decade.


Unprecedented volatility in copper prices has caused headaches for producers, consumers and traders trying to make physical hedges.


The swings are expected to continue as the market is left guessing what Sumitomo's trading positions are.


Most of the day's good news was in the equity markets. In Zurich, Swiss stocks soared ahead to end at a closing high of 3,701.9, boosted by stronger foreign markets and good demand,


German shares surged to close floor trading over 1 percent up. French shares did well too and only London failed to shine.


Frankfurt, Europe's second biggest bourse, ended 26.32 points ahead at 2566.43, boosted by a strong close in Wall Street on Friday and firmer German debt. Wall Street also moved ahead Monday.


In after-hours trading, the computerized IBIS DAX index was also up. "I think we've seen the top of the upside for the time being, at least until the Bundesbank meeting on Thursday," said one Frankfurt trader.


In Paris, stocks finished 0.7 percent higher as a takeover bid for Docks de France triggered a rally in retail shares.


Traders said the bourse came off its highs after the dollar's advance stalled ahead of the Group of Seven leading industrialized nations summit this week in Lyon, France.


The dollar was weighed down by comments from U.S. Treasury Secretary Robert Rubin that the United States will not seek a stronger dollar at the G-7 summit.





London, Europe's largest stock market, ended a dull day 0.31 percent down as the early gains in New York failed to lift British stocks out of their midsummer torpor.


"We are not exactly setting the heather on fire," said the head of equity trading at one major brokerage. "Institutions have used up all their cash for the quarter and the futures remains at a small discount."


The dollar struggled to make a decisive break above the 109 yen level, but was weighed down by comments from U.S. Treasury Secretary Robert Rubin that the U.S. will not seek a stronger dollar at the G-7 summit.


Traders adopted a wait-and-see attitude ahead of the Bundesbank meeting and the Group of Seven summit and the uncertainty was likely to keep trading muted.


"Underlying sentiment is positive, and we will see better levels again later in the week," said David Bloom at HSBC James Capel.


The G-7 summit is not expected to yield anything substantial given the view that the big economies appear to be comfortable with current exchange rates. "If anything, the summit can only be positive for the dollar," said Bloom.