The Deal: European, Asian Stocks Mixed After U.S. Debt Deal

LONDON (The Deal) -- European and Asian stock markets were mixed Thursday after the 11th-hour debt deal in the U.S. Congress.
In London, the FTSE hung on to earlier losses and was down about 0.3% at 6,548.96 by mid-morning even after news that U.K. retail sales rose more than expected in September, both year-on-year and month-on-month. In Frankfurt, the Dax was down about 0.6% at 8,796.41 and in Paris the CAC-40 fell by a similar magnitude, to 4,215.81.
Telecom Royal KPN fell about 9% on Euronext Amsterdam after Carlos Slim's América Móvil late Wednesday abandoned its 7.2 billion euros ($9.7 billion) bid because of opposition from a Dutch shareholder foundation created when the company was privatized in 1994. The foundation had exercised an option to buy additional KPN shares after KPN went under offer and had said it was acting to protect "Dutch society more generally" as well as the company itself. The prospect of Slim selling his near-29% stake in KPN worried investors.
KPN shares were by mid-morning trading at 2.125 euros; América Móvil had offered 2.40 euros per share.
In London, shares in brewer SABMiller were up more than 4% at 3,166.5 pence ($50.91) on better-than-expected first-half sales, with Latin America and Africa performing well. Hedge fund Man Group also rose after new funds in the first quarter exceeded the amount being withdrawn for the first time in two years.
In Hong Kong, the Hang Seng closed down 0.57% at 23,094.88. China Citic Bank was up 2.7% after Spain's Banco Bilbao Vizcaya Argentaria sold a 5.1% in the bank to its parent company for about $1.3 billion.
China's Dagong Global Credit Rating downgraded U.S. government debt to A- from A and maintained a negative outlook.
In Tokyo, the Nikkei gained 0.83% to 14,586.51, with IT services company Fujitsu leading the gainers after Goldman Sachs lifted its recommendation to sell from buy.

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