Skip navigation
Watchlist Sponsored By :

Current DateTime: 02:46:14 14 Nov 2009
LinksList Documentid: 24355697

FEATURED QUIZZES


Current DateTime: 02:46:14 14 Nov 2009
LinksList Documentid: 33793611
  • The Billionaire BFF's

      Philanthropists. Bridge partners. Hockey players. Which responses are based on facts from Buffett's and Gates' real lives?

  • The Many Myths of Coca-Cola

      Can you tell which statements are true, and which ones are just rumors?

  • Think You Understand Markets?

      We've selected some questions from the Financial Industry Regulatory Authority's test of investor knowledge. See how you do ...


Current DateTime: 02:46:14 14 Nov 2009
LinksList Documentid: 24890560
  • Winterizing Your Portfolio

      If 2009 was the winter of our discontent, will 2010 be a winter wonderland for investors? A lot depends on the recovery—or lack thereof.

  • Investor's Guide to Real Estate

      Some even say the long-awaited recovery is here. Regardless, buyers and sellers alike can profit from our guide.

  • Alternative Investing

      Stocks and bonds? Sure. But it's a big world out there for investors.

powered by digg
European Stocks Close Mixed As Rates Are Held Steady
By: CNBC.com | 04 Oct 2007 | 01:22 PM ET
Text Size

European stock markets closed mixed after the European Central Bank and the Bank of England held interest rates steady.

The FTSE 100 [FTIND  Loading...      ()   ] was higher, while the CAC-40 [CAC40-FR  Loading...      ()   ] and the DAX [DAX-XE  Loading...      ()   ] were nearly flat. The FTSE Global 300 [FCNBCG  Loading...      ()   ] was also flat.

U.S. stocks traded with small gains as a slightly larger-than-expected rise in jobless claims kept worries about the employment situation at bay, while oil prices receded from record levels.

The ECB kept its main refinancing rate at 4%, with President Jean-Claude Trichet saying the current market turmoil posed some risk to economic growth while inflation pressures remain.

Economists said Trichet kept his options open for the next rate-setting meeting, noting that the word "uncertainty" cropped up several times in his speech.

"They have to wait for economic indicators in euro land to improve," Valentin Hofstatter from Raiffeisen Zentralbank told "European Closing Bell" from Vienna, where the ECB's meeting was held.

But he played down suggestions that the bank's tightening bias might reverse: "they are as far away from a rate cut as they can be."

Calls for Easing in the U.K.

In the U.K. though, where the Bank of England also held rates steady at a six-year high of 5.75%, more and more economists argued it's time for an easing bias.

"Personally, I am disappointed we didn't see a rate cut today," Geoffrey Dicks, chief U.K. economist at RBS, told "European Closing Bell."

He said the high interbank lending rates and scarce credit have already tightened lending conditions and corporate borrowing costs rose by one percentage point in July-August alone.

The banking sector enjoyed another strong day, in the absence of major bad news.

Shares of Northern Rock closed nearly 6% higher after having risen by as much as 14% in morning trade, on speculation of an imminent deal. Citigroup [C  Loading...      ()   ] is willing to provide $20 billion in financing to help a takeover of the troubled lender, the Daily Telegraph reported without citing sources.

Looking to individual stocks, Daimler's Mercedes said sales rose 7.4% in September, slightly higher than a 7.1% rise in August. But sales are up less than 1% for year-to-date and shares of Daimler were flat in a slightly weaker DAX.

Shares of Abbot Group surged 22% after the oil services company said it received proposals that could result in a takeover offer. 3i could be one of the bidders. The Financial Times reported that the private equity group had been given access to Abbot's books.

Trading is expected to be lackluster ahead of a crucial U.S. employment report on Friday, which may indicate whether the Federal Reserve will continue its monetary easing when it meets to set rates at the end of October.

© 2009 CNBC.com
Tools:
Print EmailAdd This share icon
  • digg share

CNBC HIGHLIGHTS

  • Warren Buffett and Bill Gates spoke to Columbia students, and Buffett made the students a startling offer.
  • Brian L. Roberts
  • For the chief of cable company Comcast, growth has been about making deals – generally very large deals.
  • Some companies may start using insurance to shift carbon risk from their balance sheets to maybe... yours?
  • The president and founder of Genesis Today wants to improve America’s health, and thinks Wal-Mart can help.
  • Switzerland's privacy watchdog is taking legal action to force Google to make changes to its Street View service.
  • A wealthy, distracted Texas driver crashed his million-dollar Bugatti Veyron sports car into a salt marsh, say police.
ADD COMMENTS
Remaining characters


Current DateTime: 01:02:29 14 Nov 2009
LinksList Documentid: 29778428

Current DateTime: 01:05:03 14 Nov 2009
LinksList Documentid: 29779196

Current DateTime: 01:05:03 14 Nov 2009
LinksList Documentid: 29779199

Current DateTime: 01:05:03 14 Nov 2009
LinksList Documentid: 29779198
  Data is a real-time snapshot  *Data is delayed at least 15 minutes
Global Business and Financial News, Stock Quotes, and Market Data and Analysis

© 2009 CNBC, Inc.  All Rights Reserved.
A Division of NBC Universal
Thomson ReutersThomson Reuters