European shares slip
Thursday, 10 January 2008
LONDON, Jan 9 (AFP): European shares slid Wednesday, with London hit by a gloomy update from retail darling Marks & Spencer, and after heavy overnight US losses sparked by fresh housing strains.
In recent days and weeks, global equities have been rocked by concern over a potential US recession, arising from the country's slumping housing sector, could slam the brakes on world economic growth.
"You can smell the recession in the US but you can't taste it yet," said Thomas Lam, treasury economist at United Overseas Bank.
"The risk of a recession is more pressing but at the same time, we are not sure yet if it will actually happen."
On Wednesday in Europe, London's FTSE 100 index of leading shares slid 1.38 per cent to 6,269.10 points, Frankfurt's DAX 30 lost 0.80 per cent to 7,785.27 points and the Paris CAC 40 dropped 1.17 per cent to stand at 5,431.12.
In Amsterdam shares sank by 1.52 per cent, Stockholm shed 1.78 per cent and Zurich erased 1.14 per cent in value.
New York traders' screens turned red Tuesday amid negative housing news and as troubled US mortgage giant Countrywide Financial was forced to deny rumours it was on the verge of filing for bankruptcy.
European investors remained jittery, however, on the eve of interest rate decisions from the Bank of England and the European Central Bank.
In recent days and weeks, global equities have been rocked by concern over a potential US recession, arising from the country's slumping housing sector, could slam the brakes on world economic growth.
"You can smell the recession in the US but you can't taste it yet," said Thomas Lam, treasury economist at United Overseas Bank.
"The risk of a recession is more pressing but at the same time, we are not sure yet if it will actually happen."
On Wednesday in Europe, London's FTSE 100 index of leading shares slid 1.38 per cent to 6,269.10 points, Frankfurt's DAX 30 lost 0.80 per cent to 7,785.27 points and the Paris CAC 40 dropped 1.17 per cent to stand at 5,431.12.
In Amsterdam shares sank by 1.52 per cent, Stockholm shed 1.78 per cent and Zurich erased 1.14 per cent in value.
New York traders' screens turned red Tuesday amid negative housing news and as troubled US mortgage giant Countrywide Financial was forced to deny rumours it was on the verge of filing for bankruptcy.
European investors remained jittery, however, on the eve of interest rate decisions from the Bank of England and the European Central Bank.