LONDON, Dec 11: Europe’s top equity markets dropped on Tuesday, with banking shares losing further ground amid the subprime lending crisis and as investors positioned themselves before a key US interest-rate call.
London’s FTSE 100 index of leading companies fell 0.50 per cent to 6,530.60 points in late morning trade. Frankfurt’s DAX 30 shed 0.19 per cent to 8,017.90 points and in Paris the the CAC 40 lost 0.29 per cent to 5,733.74.
The DJ Euro Stoxx 50 index of top eurozone shares decreased by 0.26 per cent to 4,453.79 points. The European single currency stood at $1.4669.
Everyone it waiting for the Federal Reserve interest rate meeting due late Tuesday, said Trade index analyst Mark Foulds.
US stock markets rallied Monday with investors betting heavily that the US central bank would cut interest rates for a third straight time amid economic uncertainty.
European banking stocks continued to suffer on Tuesday after revealing delayed strains from the US home-loan crisis which is still shaking global finance four months after it broke in August.
On the falling Swiss Market Index, UBS slid 1.72 per cent to 57 Swiss francs. One of the most prestigious names in Swiss and European banking had Monday announced a further write-off of about 10 billion dollars (6.8 billion euros).
In London on Tuesday the British bank worst affected by the subprime housing woes -- Northern Rock -- saw its share price slump by 3.20 per cent to 106 pence.
Deutsche Bank meanwhile dropped 1.11 per cent to 90.38 euros and Commerzbank gave up 1.10 per cent to 27.76 euros in Frankfurt. Franco-Belgian bank Dexia decreased by 1.59 per cent to 17.98 euros in Paris.
German share prices were partly hit by a poor German economic survey, dealers said. German investor confidence slipped further in December, hitting a 15-year low as analysts forecast that chronic financial market turbulence would hobble the biggest eurozone economy, a widely watched poll showed Tuesday.
The ZEW economic institute’s indicator of German business sentiment fell to an indexed minus 37.2 points, from minus 32.5 points in November.—AFP