Eurozone Stock Markets Dip After Strong Gains

The eurozone's main stock markets retreated on Tuesday as investors digested news that German business confidence dipped slightly below last month's record high

London, (APP - UrduPoint / Pakistan Point News - 19th Dec, 2017 ) :The eurozone's main stock markets retreated on Tuesday as investors digested news that German business confidence dipped slightly below last month's record high.

Frankfurt's DAX 30 index and the Paris CAC 40 shed 0.2 percent as the euro shot higher against the dollar. Leading indices in the single-currency area had risen by around 1.5 percent on Monday as US President Donald Trump's tax-cutting plans moved a step closer.

On Tuesday in Germany, Europe's top economy, the Ifo economic institute revealed that its business climate index hit 117.2 points in December, slightly below November's historic 117.5. It comes as Germany remains mired in a political stalemate, with Chancellor Angela Merkel still trying to form a new government after coalition talks collapsed last month.

Outside the eurozone, London's benchmark FTSE 100 edged up 0.04 percent compared with the close on Monday. Most Asian stock markets extended gains Tuesday, taking a lead from fresh record-highs overnight on Wall Street where a long-awaited US tax-cut bill is expected to be passed this week.

After months of uncertainty, the controversial fiscal reforms could be on Trump's desk for signature before year-end, giving the president his first major legislative victory. "As the US government could be voting on the tax proposals this week, dealers are starting to doubt how much economic growth will added by the tax cuts," causing the Dollar to fall back, said David Madden, market analyst at CMC Markets UK.

The dollar, which rallied Friday on news that Republican senators had the votes to pass the tax bill, struggled against the euro and pound in trading on Tuesday. The fall in the dollar doesn't seem to have shaken the faith of equity investors on Wall Street.

The Dow climbed 0.2 percent in opening trade on Tuesday, although the tech-heavy Nasdaq dipped a couple of points. Elsewhere, bitcoin dropped to $17,730.59 from $18,669.80 around 2200 GMT on Monday.

"Bitcoin is having a rare day in the red on Tuesday, paring excessive gains that came as CBOE and CME prepared to launch futures contracts," said market analyst Craig Erlam at Currency trading firm Oanda.

"It's possible that the 3-4 percent declines being seen this morning is just some profit taking as bitcoin prepares to overcome another milestone -- $20,000 -- only weeks after having overcome $10,000 for the first time," he added.

Meanwhile, a South Korean exchange trading bitcoin and other virtual currencies declared itself bankrupt on Tuesday after being hacked for the second time this year, highlighting the risk over cryptocurrencies as they soar in popularity.

The Youbit exchange said it had lost 17 percent of its assets in the attack on Tuesday. - Key figures around 1430 GMT - London - FTSE 100: UP 0.04 percent at 7,540.17 points Frankfurt - DAX 30: DOWN 0.2 at 13,290.67 Paris - CAC 40: DOWN 0.2 percent at 5,411.35 EURO STOXX 50: DOWN 0.2 percent at 3,603.13 New York - DOW: UP 0.2 percent at 24,840.73 Tokyo - Nikkei 225: DOWN 0.2 percent at 22,868.00 (close) Hong Kong - Hang Seng: UP 0.7 percent at 29,253.66 (close) Shanghai - Composite: UP 0.9 percent at 3,296.54 (close) Euro/dollar: UP at $1.1819 from $1.1755 at 2200 GMT Pound/dollar: UP at $1.3353 from $1.3323 Dollar/yen: UP at 112.83 Yen from 112.63 yen Oil - Brent North Sea: UP 19 cents at $63.60 per barrel Oil - West Texas Intermediate: UP 20 cents at $57.42