Paris: Leading European stock markets edged higher yesterday, shaking off a Spanish debt downgrade and a warning from the Italian economy minister that overspending threatened European stability.
The Paris CAC 40 was up 0.13 per cent at 3,519.67 at mid-morning yesterday while in Frankfurt the DAX gained 0.31 per cent to 5,964.82. The Mib exchange in Milan had risen 0.33 per cent.
Trading was sluggish in the absence of activity in London and New York, where stock markets were closed for public holidays.
Madrid was an exception to the generally positive trend, with share prices quoted on the Ibex-35 slipping by 0.43 per cent to 9,385.1 in the aftermath a rating downgrade on Spanish public debt.
Asian markets:
Trading in Asia was mixed.
Tokyo's Nikkei closed flat, edging 5.72 points higher to 9.768.70 and Sydney ended down 0.62 per cent, or 27.8 points, at 4,429.7. The Australian index's monthly fall of 7.8 per cent was its largest since October 2008.
Shanghai dropped 2.40 per cent, or 63.62 points, to 2,592.15 on renewed fears of fresh government measures to rein in house prices. Hong Kong closed flat, edging down 1.52 points to 19,765.19.
The euro meanwhile was stable at 1.2304 dollars against 1.2335 late on Friday.
Fitch ratings agency on Friday reduced the standing of Spanish sovereign debt from the top AAA grade to AA plus, warning that Spain seemed set for weak growth, notably because of an overhang of private debt.
Investors brushed off the Spanish downgrade as well as news that business and consumer confidence in Europe fell in May after having hit a two-year high the previous month.
The Economic Sentiment Indicator produced by the European Commission fell to 98.4 points in May across the 16 countries which share the euro currency, down from 100.6 points in April.
