European Shares to Move Sideways as Trading Week Starts Quietly  

Share It: 
5/12/2008 03:02
European Shares to Move Sideways as Trading Week Starts Quietly

Futures are indicating a flat opening for the major European indices as the trading week begins a bit slowly in the region. Monday is a public holiday in a number of smaller European nations including Norway and Denmark.

Shares in Asia rose overnight on the back of strong earnings report in Japan and M&A activity in Australia. Japan's Nikkei 225 rose by 0.7% overnight. In Australia, Westpac has offered to acquire rival banking firm St. George Bank for A$14.9 billion in stock. The Hong Kong and South Korean markets were closed Monday for a public holiday. Oil prices have fallen in early Monday trading, continuing a retreat that began on Friday. Traders are reportedly concerned that the rapid rise in prices over recent days will lead OPEC to increase production in order to lower prices. A barrel of light sweet crude is currently trading at around $125. The euro has slipped against the U.S. dollar in early Monday trading as investors are betting that the Federal Reserve has finished lowering interest rates for the time being. The British pound has moved higher against its European counterparts, but has also fallen against the dollar. A pound currently buys around $1.9446. In corporate news, a report in The Sunday Times claimed that British telecom firm Vodafone is mulling a bid for African mobile operator MTN. The paper claims that Vodafone will offer in the region of ?20 billion for MTN. Sources told the Financial Times Monday, however, that no such bid has been mooted by Vodafone. British newspaper the Observer claimed on Sunday that banking giant HSBC will set aside a further $4.6 billion to cover losses incurred in the wake of the global credit crunch.