As with UK markets, Monday's mood was one of caution in Europe, with very little confidence to be drawn from the US. By close of play both the Xetra DAX in Frankfurt and the CAC 40 in Paris fell by 0.5%. Investors followed UK suit and dumped banking stocks early on after receiving poor earnings news, and then change their minds. Technology stocks again generally fared badly.
Tuesday was a better day for both the Xetra DAX and CAC 40. Whilst the DAX only managed a slight gain by the end of the day, a better day was had by the CAC 40, rising by almost 1%. Investors seemed concerned about the US economy with a lot of their economic data expected soon. In a reversal of opinion with the UK, European markets were hit today with telecommunication stocks going down. However, oil stocks were more heavily bought after BP reported better than expected first quarter profits.
Wednesday saw European markets closed for the May Day bank holiday. Trading resumed on Thursday.
Thursday was a good day in Europe for banking and oil stocks. There seemed to be no direction from US markets and this probably helped the markets to a lower close. By close of play the Xetra Dax was down by almost 1.5% and the CAC 40 was down by almost 1%. Bad news from the telecommunication sector helped markets fall, as poor earnings news dampened confidence
Friday saw most European indices fall on the back of technology and telecommunication stock sell offs. Yet more bad news for mobile telephone operators and bad news released by the US regarding employment data. The Xetra DAX closed down by almost 1.5% and the CAC 40 did close lower by 1.5%. Losses were seen overall for the week.