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. Last Updated: 07/27/2016

Little Action In European Exchanges

LONDON -- European stock exchanges drifted to a dull close Monday, unnerved by the scheduled meeting Tuesday of the U.S. Federal Open Market Committee, which sets interest rates, and Thursday's gathering of Germany's Bundesbank Council.


Wall Street's slight opening and morning gains failed to inspire the European exchanges, which had started strongly.


London share prices had extended Friday's gains to a new record trading level of 3,877.9, But follow-through demand was limited and the market was down 9.3 by the close.


Although Germany's DAX closed morning floor trade higher, its electronic IBIS DAX trading ended down 11.71 after a session dominated by hopes of possible interest rate cuts in the United States and Germany.


French shares finished firm but with reduced gains after bond markets gave up some earlier advances.


Currencies were more affected by the monetary suspense. The dollar drifted lower against the mark and held rock steady on the yen, but dull range-trading was the order of the day as the market awaited the week's key central bank meetings.


The currency markets are now expecting no change from the Fed and a cut of around 0.10 to 0.15 percentage point, 10 to 15 basis points, in the Bundesbank key money market securities repurchase, or repo, rate.


?Asian stock markets closed mixed Monday, with share prices surging in Tokyo on the back of rising futures prices. Tokyo's 225-issue Nikkei Stock Average rose 272.41 points, or 1.31 percent, closing at 21,106.41 points. On Friday, the index had lost 134.25 points, or 0.64 percent.


In Taiwan, share prices plunged on worries of deteriorating relations with China. The Taiwanese government announced Monday that Vice Premier Lien Chan is secretly visiting an undisclosed country after a visit to the Dominican Republic.


The Taipei market's Weighted Stock Index fell 181.11 points, or 2.9 percent, to 6,041.57, on fears that Lien's trip would provoke an angry response from China, which regards Taiwan as a renegade province. In Hong Kong, the Hang Seng Index, the market's key indicator of blue chips, rose 37.50 points, or 0.3 percent, closing at 11,213.48.





On Friday, the index had gained 17.95 points.





The Australian share market posted its highest close in 11 weeks, as investors moved into blue chip stocks ahead of the government budget Tuesday. The All Ordinaries Index rose 28.2 points, or 1.3 percent, to 2,261.5.