Daimler share price falls after profits warning

<p>Stocks in Daimler dipped after a warning over its profits.</p>

The share price of Daimler was down yesterday (April 11th) on the back of the news its chief executive has warned the firm's profits may not be as high as originally forecast.

Stocks in the car manufacturer lost more than three per cent of their value to €41.26, while Frankfurt's benchmark Xetra Dax dropped by 0.8 per cent to 7,871.63.

A negative opinion on the European car market given by Fiat's chief executive Sergio Marchionne had an impact on share prices around the continent, reports the Financial Times.

Carmaker Renault was a top performer in France and its share price was boosted by a rally in Japanese manufacturer Nissan, in which it holds a 43 per cent stake.

"The share price move is linked to Nissan's share price and the impact of a rebound on Japanese stocks because of the drop in the yen exchange rate. Cyclical companies have rallied for the last week," Philippe Barrier, analyst at Societe Generale said.

As a result, the French CAC 40 index was up 0.9 per cent to 3,775.66 and the FTSE Eurofirst 300 rose by 0.6 per cent to 1,192.87.

European markets had previously been affected by the Cyprus bailout.

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