LONDON, Dec 8 (AFP) - European stock markets retreated Wednesday, dragged down by late-day fears of higher oil prices and in spite of a rebounding dollar and a positive start to the day on Wall Street.
In London the FTSE 100 index fell 0.52 percent to finish at 4,703.9, while in Paris the CAC 40 lost 0.33 percent to end the session at 3,775.04. In Frankfurt the DAX lost 0.27 percent to close at 4,201.35.
The DJ Euro Stoxx 50 index of leading eurozone shares fell 0.21 percent to 2,912.44.
On the currency market the dollar posted solid gains against the euro as traders repositioned themselves after several weeks of steep declines that saw the US currency "fall too far too fast," an analyst said here.
The single European currency in late-day trading was at 1.3251 dollars, down from 1.3418 in New York late Tuesaday.
US stocks swung higher as mostly positive corporate news and underlying seasonal strength helped the market rebound from a drubbing a day earlier.
The Dow Jones Industrial Average climbed 0.49 percent to 10,491.42, and the tech-heavy Nasdaq added 0.49 percent to 2,125.12 by 1645 GMT.
The broad-market Standard and Poor's 500 index advanced 5.33 points (0.45 percent) to 1,182.40.
Even though oil prices pushed higher, the dollar bounced off its recent lows, which helped the mood.
In London sentiment was dampened by mining shares and Standard Chartered Bank.
Mining issues were hurt by negative comment from brokers that highlighted risks posed by an overall weaker dollar and prospects for falls in raw materials prices.
Anglo American fell 1.66 percent to 1,185 pence, BHP Billiton lost 2.05 percent to finish at 572 and Rio Tinto was down 2.17 percent at the close at 1,442.
Among banks, Standard Chartered lost ground on a performance report that left analysts unimpressed. They determined that the bank's share price, after gaining 11 percent since July, was overvalued. The share on Wednesday fell 2.14 percent to 961 pence.
In Paris, one broker described trading as "very hesitant," affected by developments on currency markets and oil prices.
Crude prices rebounded Wednesday, as dealers kept on eye on a meeting later this week in Cairo where according to some reports the Organization of Petroleum Exporting Countries might decide to rein in production.
Steelmaker Arcelor was the sharpest decliner on the CAC-40, losing 2.59 percent to reach 16.16, with some traders citing a "poorly-oriented" raw materials sector.
Traders this week have been pointing to the impact of increased steel exports from China on global producers hoping to profit from Asian demand. The shares have fallen for five straight days.
In the oil sector Total was down 0.99 percent at 159.80, off its lows as oil prices rallied.
Automaker Renault ended 1.34 percent to 60.30 euros after revealing positive regional unit sales figures. Rival Peugeot was 0.38 euros higher at 45.30.
In Frankfurt tech stocks found little support in response to reported prospects for US giant Texas Instruments that were deemed disappointing.
Siemens declined 0.58 percent to 61.99 and Infineon fell 1.77 percent to 8.32 euros.
The auto sector was a strong performer, underpinned by the slight fall in the euro.
DaimlerChrysler gained 0.94 percent to 34.50 while Volkswagen added 0.97 percent to reach 34.25.
Elsewhere share prices fell 0.17 percent to 2,906.39 in Brussels and 0.02 percent to 343.31 in Amsterdam. Prices gained 0.33 percent to 30,272 in Milan, while the Swiss Market Index of London-quoted issues rose 0.10 percent to 5,566.7.
In Tokyo earlier Wednesday, the Nikkei-225 shares index rose 0.62 percent to 10,941.37 points as traders ignored weaker-than-expected third-quarter economic growth data and took relief from easing concerns over the impact of a strong yen on exports.
12/08/2004 18:23 GMT - AFP