2:30 PM Frankfurt – European markets edged slightly higher after the release of mixed batch of earnings. The meeting of G 20 finance ministers and central bankers drew attention from currency traders after the yen declined sharply in the last three months.
European markets were flat as finance ministers and central bankers from G20 nations gather in Moscow.
Investors are looking for clarity on the recent slide in yen and worried that it may spark another currency war in Asia. South Korea, Taiwan, and Europe are in direct competition with Japanese manufacturers to increase exports.
European Central Bank council member Jens Weidmann said in an interview, “The exchange rate of the euro is in with fundamentals. One cannot say that the euro is overvalued.”
He added in an interview yesterday, “We will certainly justify any monetary policy decision with one single factor” and stressed that the “ECB will abstain from manipulating or directly targeting the exchange rate.”
Mario Draghi, European Central Bank President said at a press conference today in Moscow that the exchange rate is one of the important factors in assessing the economic outlook and the central bank’s mandate is to manage price stability in “either direction.”
In London trading, FTSE 100 index increased 0.2% or 13.10 to 6,340 and in Frankfurt, the DAX index added 2.8 to 7,634. In Paris, CAC 40 index increased 0.5% or 17.2 to 3,687.
Stocks in Review
Anglo American plc
increased 1.3% to £2,038.36 after the UK based mining company reported group revenue for the year ending in December jumped 10% to $32.79 billion compared to $36.55 billion in the same period of last year.
Net loss for the year swung to $1.49 billion from net income of $6.17 billion and earnings per share declined 123% to $1.19 compared to $5.10 from a year ago.
London Stock Exchange Group Plc
dropped 66 pence to 1,275 pence after the operator of exchanges reported earnings that were below expectations of few analysts.
soared 6.9% to €170.75 after the France based luxury goods retailer reported group revenue for the year ending in December surged 21% to €9.74 billion compared to €8.06 billion in the same period of last year.
Net income climbed 6% to €1.05 billion from €986 million and earnings per share jumped 6% to €8.32 compared to €7.82 from a year ago.
For the fourth quarter of 2012, consolidated revenue jumped 17.5% to €2.6 billion and gross margin for the year soared 20% to €5.96 billion.