European share markets tracked Wall Street lower in early trade on Tuesday, September 19, after US stocks burrowed further into loss overnight, but markets quickly leveled off as dealers awaited fresh leads from across the Atlantic.
An interest rate cut by the European Central Bank, announced as the Paris and London markets were closing on Monday and only hours after the US Federal Reserve lowered its key rate, helped to put a floor under European markets.
In London, the FTSE 100 index of leading shares shed 0.9 percent to 4,852.8 points. Frankfurt stocks gave up 1.1 percent, as the DAX 30 index eased to 4,188.04 points. In Paris, the CAC 40 index lost 1.4 percent to 3,958.34 points. Across the 12-nation euro zone, the Euro Stoxx 50 index dropped 0.8 percent to 3,178.7 points. The euro was changing hands for 0.9205 dollars.
European investors played catch-up with their US counterparts after US markets extended losses after the close of European trading on Monday, leaving the Dow Jones industrials with a loss of 7.1 percent and the Nasdaq technology index 6.8 percent in the red.
Asian markets rallied, relieved that Wall Street had avoided outright meltdown. Tokyo share prices rebounded 1.8 percent on Tuesday, although gains were pared by bomb threats in late trading. Hong Kong share prices eased 0.1 percent.
Many of the companies that bore the brunt of the steep falls in equity values triggered by last Tuesday's atrocities dug their heels in, and there were even some bargain hunters sniffing around.
British Airways ticked up 0.3 percent to 176.5 pence and Swissair gained 1.5 percent to 49.5 Swiss francs. But Lufthansa gave up another 4.9 percent to €10.75. European aviation and defense giant EADS slipped 3.3 percent to €11.82 in Paris, French plane maker Dassault sagged 3.8 percent to €33.63 and Rolls Royce eased 0.9 percent to 143.75 pence.
Among insurers, Allianz added 0.3 percent to 229.22 euros in Frankfurt, AXA recouped 1.7 percent to 21.52 euros in Paris, German reinsurance giant Munich Re firmed 0.9 percent to €257.69, while in London Royal and Sun Alliance gained two percent to 354 pence. ― (AFP, London)
by Daniel Rook
© Agence France Presse 2001
© 2001 Mena Report (www.menareport.com)
