European stocks slip after London’s ‘Santa Rally’

AFP, LONDON:  European stock markets fell yesterday as investors cashed in their profits one day after a so-called “Santa Rally” propelled London to a record peak.
Sentiment was subdued however on the penultimate trading day of the year, with many traders away for extended festivities to usher in the New Year.
London stocks drifted 0.1 per cent lower, one day after striking an all-time closing pinnacle at 7,106.08 in volatile low-volume deals.
Frankfurt and Paris retrenched with losses of 0.3 per cent and 0.2 per cent respectively, following losses elsewhere.
Asian equities mostly sank Thursday, with Tokyo suffering the heaviest drop in more than a month, after Wall Street had tumbled Wednesday in a sleepy session.
“The ‘Santa Rally’ has been somewhat dented after icy winds hit the US markets yesterday,” said Ipek Ozkardeskaya, analyst at London Capital Group.
“Then Asian stocks slid ... and the FTSE is suffering from a combination of profit taking and risk-off trading,” she added.
‘Santa favours gold diggers’
However, shares in gold mining companies like Fresnillo and Randgold forged higher in London on the back of firmer prices for the glamorous precious metal.
“Santa seems to favour gold diggers today,” noted Ozkardeskaya.
Fresnillo gained 2.0 per cent and Randgold won 1.3 percent in value.
“Both the FTSE 100 and the (European) indices are pulling back ... although the UK leaderboard is still topped by the silver and gold miners Fresnillo and Randgold, a sector where European markets offer little by way of exposure,” added AJ Bell investment director Russ Mould.
On Friday—New Year’s Eve—London will shut up shop at lunchtime but Frankfurt and Paris will remain open as normal.
Back in Asia, Tokyo slumped Thursday as the yen strengthened against the dollar while Toshiba’s stock plunged for the third straight day.
The troubled conglomerate’s shares ended another torrid day 17 percent down, following the company’s warning of a possible one-time loss of several billion dollars over its US nuclear business.
Its stock has now lost more than 40 per cent since Tuesday, meaning the loss could take out a huge portion of its equity capital and force the company to seek funds from investors.
Overall, Japanese stocks saw their biggest drop in more than a month with a 1.3-per cent slump. The Nikkei is now up just 0.7 per  cent in 2016.
Losses accelerated as the yen climbed more than one percent against the greenback. A stronger yen weighs on the profitability of Japanese exporters and therefore tends to dent their share prices.
Dow retreats from 20,000 
In New York, the Dow Jones Industrial Average receded Wednesday on profit-taking, after nearing the historic and psychological barrier of 20,000 points.
Wall Street investors sold equities at the fastest rate since before Donald Trump’s surprise election victory in November, paring the post-election rally.
The oil market diverged ahead of official US inventory data, with the market expecting a 1.5-million-barrel drop in commercial crude stockpiles. 
Falling reserves indicate growing demand in the world’s top oil consuming nation, and therefore tend to push prices higher.

European stocks slip after Londons Santa Rally

AFP, LONDON: European stock markets fell yesterday as investors cashed in their profits one day after a so-called Santa Rally propelled London to a record peak. Sentiment was subdued however on the penultimate trading day of the year, with many traders away for extended festivities to usher in the New Year. London stocks drifted 0.1 per cent lower, one day after striking an all-time closing pinnacle at 7,106.08 in volatile low-volume deals. Frankfurt and Paris retrenched with losses of 0.3 per cent and 0.2 per cent respectively, following losses elsewhere. Asian equities mostly sank Thursday, with Tokyo suffering the heaviest drop in more than a month, after Wall Street had tumbled Wednesday in a sleepy session. The Santa Rally has been somewhat dented after icy winds hit the US markets yesterday, said Ipek Ozkardeskaya, analyst at London Capital Group. Then Asian stocks slid ... and the FTSE is suffering from a combination of profit taking and risk-off trading, she added. Santa favours gold diggers However, shares in gold mining companies like Fresnillo and Randgold forged higher in London on the back of firmer prices for the glamorous precious metal. Santa seems to favour gold diggers today, noted Ozkardeskaya. Fresnillo gained 2.0 per cent and Randgold won 1.3 percent in value. Both the FTSE 100 and the (European) indices are pulling back ... although the UK leaderboard is still topped by the silver and gold miners Fresnillo and Randgold, a sector where European markets offer little by way of exposure, added AJ Bell investment director Russ Mould. On FridayNew Years EveLondon will shut up shop at lunchtime but Frankfurt and Paris will remain open as normal. Back in Asia, Tokyo slumped Thursday as the yen strengthened against the dollar while Toshibas stock plunged for the third straight day. The troubled conglomerates shares ended another torrid day 17 percent down, following the companys warning of a possible one-time loss of several billion dollars over its US nuclear business. Its stock has now lost more than 40 per cent since Tuesday, meaning the loss could take out a huge portion of its equity capital and force the company to seek funds from investors. Overall, Japanese stocks saw their biggest drop in more than a month with a 1.3-per cent slump. The Nikkei is now up just 0.7 per cent in 2016. Losses accelerated as the yen climbed more than one percent against the greenback. A stronger yen weighs on the profitability of Japanese exporters and therefore tends to dent their share prices. Dow retreats from 20,000 In New York, the Dow Jones Industrial Average receded Wednesday on profit-taking, after nearing the historic and psychological barrier of 20,000 points. Wall Street investors sold equities at the fastest rate since before Donald Trumps surprise election victory in November, paring the post-election rally. The oil market diverged ahead of official US inventory data, with the market expecting a 1.5-million-barrel drop in commercial crude stockpiles. Falling reserves indicate growing demand in the worlds top oil consuming nation, and therefore tend to push prices higher.