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Market Update Analysis: 
Germany, France Close down 1.1%
Author: Elena Todorova
123jump.com
Last Update: 1:13 PM EST November 02 2006


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European stock markets closed notably lower, as investors turned to profit taking after a weak opening on Wall Street, mixed earnings reports, and a hint by the ECB that it will raise interest rates at its next meeting. The German DAX 30 slipped 1.1%. The French CAC 40 also dropped 1.1%, while London FTSE 100 closed flat at 6,149,30.

 
Miners fell on the demand implications behind slowing growth in the US. Rio Tinto was off 1.4%, while Antofagasta slipped 1.5%.

The performance contrasted with that of domestic rival UBS, which on Tuesday reported a 21% fall in third-quarter profits, missing expectations. UBS shares fell 0.3%, while those of Deutsche Bank, which reported lower trading revenues on Wednesday, fell 0.2%.

Oil and gold

Oil prices fell slightly Thursday as the market reacted to a weekly U.S. report that showed a climb in crude oil stocks but a larger-than-expected drop in product inventories. Light sweet crude for December delivery fell 11 cents to $58.60 a barrel in electronic trading on the NYME.

Gold opened Thursday at a bid price of $614.90 a troy ounce, down from $615.20 late Wednesday.

Currencies

The euro rose to $1.2758 from $1.2756 yesterday. Against the euro, the British pound was at 66.88 pence from 66.85 pence yesterday. The U.K. currency was also at $1.9082 versus the dollar from $1.9095. The yen climbed to 116.77 against the dollar.
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