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European stocks fluctuate, Porsche slumps; DAX down 0.35%

Published 03/28/2011, 06:17 AM
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Investing.com – European stock markets fluctuated between gains and losses on Monday, as investors continued to monitor soaring radiation levels in Japan as well as ongoing violence in the MENA region, while U.S. futures indexes pointed to a mixed open on Wall Street.

During European morning trade, the EURO STOXX 50 dipped 0.1%, France’s CAC 40 shed 0.12%, while Germany's DAX 30 slipped 0.35%.

Shares in German automaker Porsche slumped 3.5% after the group confirmed its board had agreed to issue new shares worth as much as EUR5 billion as part of its planned capital increase to reduce debt.

Across the sector, Daimler saw shares drop 2.4%, shares in BMW sank 1.7%, while French automaker Renault saw shares fall 1.4%.

Elsewhere, shares in France’s largest telecommunications firm Alcatel-Lucent jumped 5.5% after Goldman Sachs upgraded the stock to ‘buy’, saying it saw a “46% upside potential” to the shares.

Shares in Nokia, the world’s largest mobile-phone maker by volume climbed 2.5% after Goldman Sachs recommended buying the shares, saying the company’s “back-to-basics” strategy creates a long-term opportunity for value investors.   

In London, the FTSE 100 climbed 0.1% as shares in the financial sector advanced, aided by bullish comments on the sector from both Barclays Capital and JP Morgan.

JP Morgan reiterated its "overweight" stance on U.K. banks, "a sector which will benefit from lower cost of capital, was the worst performer in the last 6-12 months but is attractively priced and will be supported by a recovery in credit demand".

Meanwhile, shares in oil explorer Cairn Energy jumped 2.1% after UBS recommended buying the stock, saying there are likely to be positive outcomes to four drilling prospects.

The outlook for U.S. equity markets, meanwhile, was mixed. The Dow Jones Industrial Average futures pointed to a modest loss of 0.05%, S&P 500 futures eased down 0.03%, while the Nasdaq 100 futures pointed to a gain of 0.25%.

Later in the day, the U.S. was to release industry data on pending home sales as well as official data on personal spending, personal income and personal consumption expenditures.


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