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April 16, 2011, 12:07 a.m. EDT

China Inflation Keeps Markets Tame

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By Aude Lagorce and V. Phani Kumar

European markets rose Friday as gains for defensive stocks offset declines for banking shares.

A report showing a surge in Chinese inflation kept stocks in check as it fueled expectations of further monetary tightening that could slow the country's growth. That also hit most Asian markets, although China's benchmark eked out a gain, with analysts saying the inflation news had already been priced in.

The Stoxx Europe 600 index rose 0.3% to 277.78, paring losses for the week to 1.4%.

Defensive stocks such as consumer-goods firms Reckitt Benckiser Group and Beiersdorf /zigman2/quotes/210479173/delayed DE:BEI +1.08% did well, ending up 2.7% and 2.1%, respectively.

Financial shares, on the other hand, sagged after Bank of America reported weak results. Commerzbank /zigman2/quotes/200193353/delayed DE:CBK -2.19% dropped 4.3% in Frankfurt, while Credit Agricole /zigman2/quotes/209264506/delayed FR:ACA +1.68% dipped 1.9% and Natixis  fell 1.7% in Paris.

In LONDON , the FTSE 100 index added 0.5% to 5996.01, helped by gains in the retail sector, but it slipped 1% for the week. Hedge-fund manager Man Group climbed 4.2% after Bank of America Merrill Lynch added it to its Europe 1 focus list, saying it is likely to be a strong performer over the next two to three years.

But semiconductor firm Micro Focus International /zigman2/quotes/207956281/delayed UK:MCRO +0.07% lost 7.8% after it announced that Chief Executive Nigel Clifford was leaving barely a year into the job.

Next PLC added 2% and Marks & Spencer Group /zigman2/quotes/206225481/delayed UK:MKS +0.77% advanced 1% after unlisted supermarket Waitrose reported that sales soared 25% year-on-year. 

In FRANKFURT , the DAX 30 rose 0.4% to 7178.29, led by a 2.4% advance for drug firm Merck KGaA /zigman2/quotes/200605022/delayed DE:MRK +1.54% . The index snapped three weeks of gains with a 0.5% weekly loss. 

Hochtief /zigman2/quotes/205338461/delayed DE:HOT +0.19% lost 3.6% after UBS /zigman2/quotes/206172872/composite UBS -1.58% downgraded the German construction group to "neutral" from "buy."

In the chemicals sector, K+S rose 1.3% after it said it was considering further price hikes for potash fertilizer. BASF /zigman2/quotes/204280060/delayed DE:BAS +1.13% gained 1.7%.

In PARIS , the CAC 40  inched up 0.1% to 3974.48, helped by a 2% gain for cosmetics giant L'Oreal /zigman2/quotes/204720038/delayed FR:OR +1.19% , but finished the week down 2.2%.  Carrefour /zigman2/quotes/208564127/delayed FR:CA +0.52% fell 1.4% as Jefferies analysts cut their rating on the stock to "hold" from "buy," citing the group's sluggish European performance and worst-than-expected cash flow.

In TOKYO , the Nikkei Stock Average slipped 0.7% to 9591.52. That left it down 1.8% on the week to snap a three-week win streak. Hitachi Construction Machinery /zigman2/quotes/205375504/delayed JP:6305 +2.24% shed 1.4% and Sony fell 1.3%.

In MUMBAI , the Sensex fell 1.6% to 19386.82, weighed down by Infosys, which slumped 9.6% as the company's 14% increase in fiscal-fourth-quarter net profit and its earnings forecast fell short of expectations. ICICI Bank and real-estate concern DLF both fell 2.4%, after data showed India's wholesale-price index for March rose nearly 9%, well above market expectations.

In SHANGHAI , the Shanghai Composite Index rose 0.3% to 3050.53, a 2011 closing high. Poly Real Estate Group /zigman2/quotes/201864015/delayed CN:600048 -1.63% rose 2.3% in Shanghai and China Vanke /zigman2/quotes/205643772/delayed CN:000002 -1.15% advanced 1.1% in Shenzhen.

Write to Aude Lagorce at aude.lagorce@dowjones.com and V. Phani Kumar at phani.kumar@dowjones.com

/zigman2/quotes/210479173/delayed
DE : Germany: Frankfurt
103.10
+1.10 +1.08%
Volume: 100.00
Aug. 8, 2022 12:35p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
N/A
Rev. per Employee
€360,586
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/zigman2/quotes/200193353/delayed
DE : Germany: Frankfurt
7.05
-0.16 -2.19%
Volume: 8,604
Aug. 8, 2022 1:22p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
N/A
Rev. per Employee
€166,016
loading...
/zigman2/quotes/209264506/delayed
FR : France: Euronext Paris
9.89
+0.16 +1.68%
Volume: 2.14M
Aug. 8, 2022 2:36p
P/E Ratio
5.96
Dividend Yield
10.61%
Market Cap
€27.83 billion
Rev. per Employee
€670,879
loading...
/zigman2/quotes/207956281/delayed
UK : U.K.: London
294.00 p
+0.20 +0.07%
Volume: 250,074
Aug. 8, 2022 1:29p
P/E Ratio
N/A
Dividend Yield
7.55%
Market Cap
£987.18 million
Rev. per Employee
£177,642
loading...
/zigman2/quotes/206225481/delayed
UK : U.K.: London
137.20 p
+1.05 +0.77%
Volume: 1.27M
Aug. 8, 2022 1:35p
P/E Ratio
9.09
Dividend Yield
0.00%
Market Cap
£2.67 billion
Rev. per Employee
£164,403
loading...
/zigman2/quotes/200605022/delayed
DE : Germany: Frankfurt
187.55
+2.85 +1.54%
Volume: 238.00
Aug. 8, 2022 11:54a
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
N/A
Rev. per Employee
€286,891
loading...
/zigman2/quotes/205338461/delayed
DE : Germany: Frankfurt
52.34
+0.10 +0.19%
Volume: 0.00
Aug. 8, 2022 8:06a
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
N/A
Rev. per Employee
€428,174
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/zigman2/quotes/206172872/composite
US : U.S.: NYSE
$ 16.22
-0.26 -1.58%
Volume: 3.63M
Aug. 5, 2022 4:00p
P/E Ratio
7.27
Dividend Yield
3.08%
Market Cap
$52.77 billion
Rev. per Employee
$486,923
loading...
/zigman2/quotes/204280060/delayed
DE : Germany: Frankfurt
44.70
+0.50 +1.13%
Volume: 12,030
Aug. 8, 2022 2:26p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
N/A
Rev. per Employee
€512,034
loading...
/zigman2/quotes/204720038/delayed
FR : France: Euronext Paris
362.40
+4.25 +1.19%
Volume: 66,666
Aug. 8, 2022 2:36p
P/E Ratio
36.23
Dividend Yield
1.32%
Market Cap
€191.15 billion
Rev. per Employee
€415,133
loading...
/zigman2/quotes/208564127/delayed
FR : France: Euronext Paris
16.57
+0.09 +0.52%
Volume: 434,313
Aug. 8, 2022 2:36p
P/E Ratio
12.53
Dividend Yield
3.14%
Market Cap
€12.07 billion
Rev. per Employee
€247,292
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/zigman2/quotes/205375504/delayed
JP : Japan: Tokyo
¥ 2,915.00
+64.00 +2.24%
Volume: 1.10M
Aug. 8, 2022 3:00p
P/E Ratio
7.10
Dividend Yield
2.13%
Market Cap
¥606.27 billion
Rev. per Employee
¥41.02M
loading...
/zigman2/quotes/201864015/delayed
CN : China: Shanghai
¥ 15.11
-0.25 -1.63%
Volume: 82.75M
Aug. 8, 2022 3:00p
P/E Ratio
6.60
Dividend Yield
3.84%
Market Cap
¥183.87 billion
Rev. per Employee
¥4.62M
loading...
/zigman2/quotes/205643772/delayed
CN : China: Shenzhen
¥ 16.27
-0.19 -1.15%
Volume: 59.22M
Aug. 8, 2022 3:00p
P/E Ratio
8.39
Dividend Yield
5.96%
Market Cap
¥183.67 billion
Rev. per Employee
¥3.10M
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