LONDON, Nov 25: Global stock markets were narrowly mixed on Tuesday as investors took quick profits on some of the massive gains made over the past two days following the bailout of US banking giant Citigroup.

Dealers said the announcement that US authorities would pour another $800 billion into the financial system in an effort to tame the crisis also boosted morale but noted some unease about how such commitments can be funded.

They said that after two euphoric days, profit-taking was only to be expected, especially after Monday when many European markets posted record single-day gains and Wall Street built another sharp advance.

Sentiment was then dented, however, after figures showed the US economy shrank 0.5 per cent in the third quarter, revised up from 0.3 per cent, alongside a record fall in US house prices.

On Wall Street, stocks opened firmer on news of the $800bn plan to buy mortgage- and other asset-backed securities, including credit card loans, but then slipped back after the third quarter data that the White House described as “troubling.”

The Dow Jones Industrial Average was down 0.61 per cent at around 1715 GMT.

In Europe, London’s FTSE 100 index of leading shares finished up 0.44 per cent at 4,171.25 points but was off early highs as Wall Street fell back.

In Paris, the CAC 40 gained 1.18 per cent to 3,209.56 points and in Frankfurt the DAX edged up 0.13 per cent to 4,560.42 points.

“It is a technical rebound, following on from the gains (on Monday) after two terrible weeks,” said a dealer in Paris.

Elsewhere in Europe, Madrid was up 0.86 per cent, Milan fell 0.61 per cent, Brussels put on 1.13 per cent, Amsterdam was flat and Swiss stocks gained 0.22 per cent.

“The key question for markets is whether the equity rally seen over the last couple of days can be sustained,” said Calyon analyst Daragh Maher in London.

“History would suggest not, as previous bouts of euphoria in the wake of big announcements (since the credit crunch began) have proven short-lived in nature.—AFP