European stocks on Ebola, eurozone concerns

Europe's main stock markets pulled back Friday on concerns over New York's first Ebola case and the outlook for the eurozone.

London's FTSE 100 index shed 0.47 percent to 6,388.73 points after data showed British economic growth slowed to 0.7 percent in the third quarter after 0.9-percent expansion in the second.

In Paris, the CAC 40 fell 0.69 percent to 4,128.90 points, while Frankfurt's DAX 30 index shed 0.66 percent to 8,987.80 points.

"European equity markets extended losses in the last session of the week as risk appetite was limited following renewed concerns about eurozone’s economic stability and future prospects," said analyst Myrto Sokou at Sucden Research.

She pointed to comments by ECB chief Mario Draghi at the EU summit in Brussels that states needed to make efforts to avoid the eurozone relapsing into recession.

Germany and France have clashed over loosing the EU's fiscal corset to provide more stimulus as growth stalls as the region flirts with dangerous deflation.

Fears about slower global growth prompted a sell-off in equities last month that saw Europe's major market tumble around 10 percent.

The first confirmed Ebola case in New York City also unnerved investors.

"Travel stocks posted heavy losses as investors remained cautious about the Ebola virus," added Sokou.

ECB stress tests awaited

Shares in major banks climbed however as investors grew confident that their actions over the previous months to plug holes in their balance sheets meant there would be few nasty surprises when the European Central Bank (ECB) announces Sunday the results of an unprecedented health check of eurozone banks.

These tests are one of the main reforms after the eurozone debt crisis to reduce the risks of a repetition of crisis in parts of the banking system.

"We expect that the majority of banks will pass the assessment," said credit rating agency Fitch.

In Paris, French luxury products group Kering topped the CAC 40 fallers board, sinking 5.1 percent to 145.70 euros.

Kering posted a rise third-quarter sales, but investors focused on falling revenues at its high-end brand Gucci.

Ruble hits new low

Asian markets were mixed following strong gains on Wall Street, with Tokyo enjoying a significant bump due to the dollar's rise against the yen.

Tokyo rose 0.79 percent, Sydney added 0.54 percent, while Hong Kong lost 0.13 percent, Seoul fell 0.31 percent and Shanghai ended flat.

US stocks pushed upwards as strong earnings from UPS and others offset disappointing results from Amazon.

The Dow Jones Industrial Average rose 0.56 percent to stand at 16,771.09 points in midday trading.

The broad-based S&P 500 climbed 0.46 percent to 1,959.82, while the tech-rich Nasdaq Composite Index added 0.43 percent to 4,471.87 points.

Amazon shares sank 6.9 percent as its third-quarter loss rose ten-fold to $437 million due to the costs of product launches.

In foreign exchange deals in London, the euro climbed to $1.2673 from $1.2647 late in New York on Thursday.

The European single currency slid to 78.74 British pence from 78.88 pence. The British pound rose to $1.6094 from $1.6032 on Thursday.

On the London Bullion Market, the price of gold was steady at $1,232.75 an ounce.

Russia's ruble slumped to a new all-time low of more than 53 to the euro as the economic fallout from the Ukraine crisis and lower oil prices caused the finance minister to call for a "back-up" 2015-2017 budget.

The ruble also slid against the dollar amid speculation swirling that Standard and Poor's could cut its rating for Russia to a "speculative" level. The agency however affirmed Moscow's "BBB-" rating, although it kept it on negative outlook.

AFP