European stock markets steadier after sharp losses

LONDON, May 24 (AFP): European stock markets rebounded modestly on Friday, following sharp losses suffered the previous day, failing to record bigger gains despite positive German economic data.

London's benchmark FTSE 100 index fell 0.29 percent to stand at 6,697.05 points in late morning deals, Frankfurt's DAX 30 dipped 0.13 percent to 8,341.28 points and in Paris the CAC 40 rose 0.22 percent to 3,975.73.

The Madrid market dropped 0.12 percent, Milan grew 0.20 percent and Stockholm advanced by 0.30 percent in value.

"After the drama of yesterday's sell-off markets have started on a much quieter note this morning, ticking sideways as traders weigh up whether the move represents the first phase of a much deeper correction still to come," said Matt Basi, head of UK sales trading at CMC Markets.

"Much stronger than expected measures on the German Ifo business survey weren't enough to inspire a return to" buying on dips in the market, he added.

German business confidence rose unexpectedly in May, data showed on Friday, as businesses in Europe's top economy express satisfaction with their situation and become more optimistic about the future.

The Ifo economic institute's closely watched business climate index rose to 105.7 points in May from 104.4 points in April. Analysts had been expecting an unchanged reading this month.

"The Ifo business climate index has risen again after two consecutive declines," said the think tank's economist Kai Carstensen.

"The firms are clearly more satisfied with their current business situation than in the previous month. The outlook for future business is unchanged and slightly positive," he said.
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