Friday May 9, 08:40 AM
Euroshares open lower after Asia losses, AIG, Allianz weighs
LONDON (Thomson Financial) - Europe's leading exchanges opened with losses Friday, following steep losses in Asia overnight as record oil prices sparked fresh inflationary concerns and after disappointment from AIG and Allianz weigh on sentiment.
At 8:17 a.m., the DJ STOXX 50 was down 27.54 points or 0.84 percent to 3,248.09, while the DJ STOXX 600 lost 2.54 points or 0.77 percent to 326.74.
In the US overnight, Wall Street closed a quiet session with a moderate advance, with energy and other commodity companies leading the market as oil prices extended their record-breaking run.
The DJIA closed up 52.43 to 12,866.78. Separately, the S&P 500 index rose 5.11 to 1,397.68, and the Nasdaq composite (NASDAQ: news) index gained 12.75 to 2,451.24.
At the close of trade AIG reported a much larger than expected quarterly loss.
It said first-quarter adjusted net loss of $3.56 billion, or $1.41 a share, compared with adjusted net income of $4.39 billion, or $1.68 a share, in the same period a year ago.
The mean estimate of analysts surveyed by Thomson Reuters (TRI.TO - news) was for a loss of 76 cents a share.
The group said it hopes to raise $12.5 billion in new capital.
And there was more disappointment in Asia, with earnings numbers from Toyota and Mitsui Chemical weighing on sentiment.
The Nikkei 225 index fell back 287.92 points to 13,655.34, while the Hang Seng (news) index ended the session 394.11 points lower at 25,055.68.
Also in Asia, crude oil traded near new all-time highs above $124 a barrel on Friday even after the OPEC cartel insisted the market is well-supplied and being driven by speculators.
Analysts said OPEC's view has already been factored into prices.
Back in Europe, German insurance giant Allianz said it will be hard to achieve its mid-term targets in the current environment, adding to the gloom among insurers.
The stock fell back 1.33 percent, with slightly better-than-expected first-quarter numbers capping losses.
Staying in Germany, chemical group Linde (Xetra: 648300 - news) shed 2.7 percent after it failed to meet analyst expectations on an operating basis.
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