Interest rates were in focus and the speculation is that European Central Bank's rate cuts expected next week will be sizeable. Fresh data shows November's euro zone inflation plunged to 2.1% and unemployment rose faster than expected. Most analysts now predict a 50 basis point cut when the ECB meets next week. Euros' main market opened down 0.3% after seeing arise to 11.6% earlier this week. Oil was also down dipping below $54 a barrel on a roundup to OPEC this weekend.
Meanwhile, shares in Germany's Commerz Bank surged as it sealed its takeover with Dresdner ahead of time. Commerz Bank will pay just over five billion euros or 6.6 billion US dollars. The move is expected to see nine thousand jobs go, the combined group will become Germany's biggest bank in terms of customer numbers, although it will still be second to Deutsche in terms of assets.
In London, the government will own 58% of Royal Bank of Scotland of the shareholder shunned the rescue plan, investors only signed up for tiny push of the offering, leaving the government with the remaining 22.8 billion shares. On Friday morning, shares in London fell by 1.27%.
In India, markets reopened after being closed on Thursday, following attacks in the financial capital of Mumbai. After what analyst called a ‘knee-jerk reaction’, the market settled back with Mumbai's Sensex Index ending Friday slightly up. The attacks on two luxury hotels and elsewhere have left scores dead and hundreds wounded. The fear now was foreign investors who start withdrawing from an already shaky market.
|