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European shares ease on inflation scares
10/16/2005
LONDON, Oct 15 (AFP): European stock markets mostly dipped Friday, as investors zeroed in on inflationary concerns in the global economy, with easing oil prices putting energy stocks under pressure, dealers said.
London's FTSE 100 index eased 0.02 per cent to 5,264.20 points, the Frankfurt DAX 30 dipped 0.05 per cent to 4,947.60 points and in Paris the CAC 40 declined 0.15 per cent to 4,463.47.
The DJ Euro Stoxx 50 index of leading eurozone shares firmed 0.02 per cent to 3,332.18 points.
The euro stood at 1.1987 dollars.
In London, dealers said trading was expected to remain jittery ahead of this afternoon's US inflation report for September amid forecasts of a sharp rise.
Inflationary fears raise investor worries about the outlook for the global economy and for corporate profit margins.
Energy stocks, meanwhile, were under pressure after oil prices fell below 63 dollars per barrel in New York as the US government's weekly crude stocks report suggested weakening demand.
British energy company BG Group dipped 2.11 per cent to 486 pence, while oil exploration firm Cairn Energy sank 0.93 per cent at 1,700 pence and BP weakened 0.88 per cent to 616.5 pence.
French oil group Total declined 1.52 per cent to 207.3 euros in Paris trade.
Over in Frankfurt, German power giant RWE decreased 1.08 per cent to 51.41 euros and peer EON lost 0.95 per cent to 73.72 euros.
Bucking the trend in London, Hilton Group shares rocketed 11.7 per cent to 340.5 pence as the leisure operator confirmed an offer for its hotels arm from Hilton Hotels Corporation, the US parent from which it split back in 1964.
Somerfield rose 2.9 per cent to 192.5 pence after the British supermarket said it had agreed to a cash takeover bid from an investment consortium.
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