LONDON -- European equity markets have been trading lower Wednesday, though driven by a broader consolidation and respite rather than any fundamental catalyst. Mining and industrial companies -- heavily weighted in the key benchmark indexes, particularly in the U.K. -- have been generally adding pressure as concerns over Chinese growth prospects and demand for commodities push prices. The German DAX
As always, the following price moves are based on this morning's European trading.
Last week, soft Chinese trade data brought about a flurry of worries in the commodity markets that demand from the Asian giant and its potential growth prospects could be faltering. Although more buoyant news in recent weeks has built hope that the Chinese government will begin to undertake measures to stimulate its economy, this key concern has once again come to the fore on a day where there is little news to offer direction.
While most of the large mining names have been suffering in London, Eurasian Natural Resources (NASDAQOTH: EURNY.PK) is one of the worst performers today after it released weaker-than-expected earnings today. The company's shares are down almost 7% after it reported first-half pre-tax profit more than halving to $667 million on the back of softer commodity prices and a challenging economic environment -- results that are having a knock-on impact throughout the sector.
In a similar vein, steelmaker ArcelorMittal
On a more positive note, and away from the industrial majors, Finnish phone maker Nokia
Elsewhere, Telekom Austria (NASDAQOTH: TKAGY.PK) is up more than 2% after it said it received a 735 million euro credit line to refinance. The company said this will replace the 713 million euro facility that is due to expire in August, with this new facility being led by Citigroup and UniCredit for the company's finance unit, Telekom Finanzmanagement.
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