World stocks mixed after Wall Street rally
Thursday, 4 December 2008
LONDON, Dec 3 (AFP): Europe's leading stock markets fell in early trade today while Asian shares clawed back some ground after Wall Street rebounded overnight on hopes of a US government rescue for ailing automakers.
The Asian recovery from heavy losses the previous day was relatively modest and dealers said it was driven largely by technical factors, with sentiment still cautious following a recent flood of grim economic data.
Tokyo closed up 1.79 per cent, Hong Kong climbed 1.40 per cent, Sydney edged up 0.20 per cent and Seoul ended flat.
In early European trade, London was down 0.43 per cent, Frankfurt shed 1.59 per cent and Paris lost 1.16 per cent.
"Equity markets continue to gyrate," said Barclays Capital analyst Laurent Fransolet. "The news continues to be mixed, but the responses of various authorities seem to be viewed a bit more positively."
Wall Street snapped back Tuesday from a brutal session a day earlier, with sentiment lifted by a better-than-expected outlook from General Electric and hopes for a US rescue for ailing Detroit automakers, traders said.
"The market continues to be influenced by US stocks, reversing recent losses slightly after the Big Three (carmakers) put forward their revamp plans," said Hideaki Higashi, a strategist at SMBC Friend Securities.
Higashi however said automakers Chrysler, Ford and General Motors still faced a bumpy road to clear negotiations with Congress before they get a bailout.
"The rescue plan could be diluted from what they want," he warned.
"There are calls for the management to take responsibility and protect payrolls in the auto sector, which is considered the soul of America, unlike financial companies," he said.
Wall Street, which reopens at 1430 GMT, was also boosted overnight by General Electric's better-than-expected business update.
Investors are looking to central banks this week for the latest round of action to combat the worst financial crisis since the 1930s and which is threatening to plunge the global economy into recession.
The European Central Bank and the Bank of England are both widely expected to slash interest rates Thursday.
Economic news remained gloomy. Australia's economy grew just 0.1 percent in the third quarter-its slowest pace in eight years, official figures showed.
The Asian recovery from heavy losses the previous day was relatively modest and dealers said it was driven largely by technical factors, with sentiment still cautious following a recent flood of grim economic data.
Tokyo closed up 1.79 per cent, Hong Kong climbed 1.40 per cent, Sydney edged up 0.20 per cent and Seoul ended flat.
In early European trade, London was down 0.43 per cent, Frankfurt shed 1.59 per cent and Paris lost 1.16 per cent.
"Equity markets continue to gyrate," said Barclays Capital analyst Laurent Fransolet. "The news continues to be mixed, but the responses of various authorities seem to be viewed a bit more positively."
Wall Street snapped back Tuesday from a brutal session a day earlier, with sentiment lifted by a better-than-expected outlook from General Electric and hopes for a US rescue for ailing Detroit automakers, traders said.
"The market continues to be influenced by US stocks, reversing recent losses slightly after the Big Three (carmakers) put forward their revamp plans," said Hideaki Higashi, a strategist at SMBC Friend Securities.
Higashi however said automakers Chrysler, Ford and General Motors still faced a bumpy road to clear negotiations with Congress before they get a bailout.
"The rescue plan could be diluted from what they want," he warned.
"There are calls for the management to take responsibility and protect payrolls in the auto sector, which is considered the soul of America, unlike financial companies," he said.
Wall Street, which reopens at 1430 GMT, was also boosted overnight by General Electric's better-than-expected business update.
Investors are looking to central banks this week for the latest round of action to combat the worst financial crisis since the 1930s and which is threatening to plunge the global economy into recession.
The European Central Bank and the Bank of England are both widely expected to slash interest rates Thursday.
Economic news remained gloomy. Australia's economy grew just 0.1 percent in the third quarter-its slowest pace in eight years, official figures showed.