LONDON, Dec 19: Europe’s main equity markets slid on Wednesday after earlier losses in Japan, with the banking sector in focus following downbeat guidance from US investment titan Goldman Sachs, analysts said.

However, they added that investor concerns over a global credit squeeze had eased somewhat after massive fund injections by some leading central banks.

London’s FTSE 100 index of leading companies fell 0.11 per cent to 6,272.20 points in late morning trade.

Frankfurt’s DAX 30 lost 0.43 per cent to 7,816.73 points and in Paris the CAC 40 shed 0.24 per cent to 5,496.18 approaching the half-way stage. The DJ Euro Stoxx 50 index of eurozone shares fell 0.25 per cent to 4,298.33 points.

The European single currency stood at $1.4402.

Wall Street had gained ground on Tuesday as central banks continued efforts to bolster liquidity in the stressed global banking system and as Goldman Sachs unveiled better-than-expected profits.

In Europe on Wednesday, some banking stocks were hit after Goldman Sachs reshuffled its ratings on European banks, including Barclays and HBOS.

The market seems to be a bit slow, said Hargreaves Lansdown equity analyst Keith Bowman on Wednesday.

Goldman Sachs has given a cautious outlook on equities which is not helping the banking sector.

In London, Barclays shares dived 1.47 per cent to 501.50 pence while HBOS was flat at 736 pence.

In Paris, Societe Generale saw its share price slide 1.65 per cent to 97.47 euros, and Commerzbank stock lost 0.80 per cent to 25.96 euros in Frankfurt.

Global equities took a tumble at the start of the week on renewed concerns about resurgent inflation in the United States.

In US deals on Tuesday, the benchmark Dow Jones Industrial Average had ended with a gain of 0.50 per cent to 13,232.47 points.

The Nasdaq composite finished 0.84 per cent higher at 2,596.03 points while the Standard & Poor’s 500 broad-market index gained 0.63 per cent to 1,454.98.—AFP