Monday February 9, 12:55 PM
European stocks sag over US stimulus plan
LONDON (AFP) - Europe's main stock markets drifted lower on Monday amid investor anxiety about the progress of US President Barack Obama's huge economic stimulus package, analysts said.
Investor sentiment was also hit after auto giant Nissan announced plans to axe 20,000 jobs worldwide as a result of the global downturn.
In late morning deals, London's FTSE 100 index of leading shares was showing a fall of 0.23 percent to 4,082.03 points. Frankfurt's DAX 30 (Xetra: news) shed 0.35 percent to 4,628.61 points and in Paris the CAC 40 (Paris: news) dropped 0.05 percent to 3,121.19 near the half-way mark.
The DJ Euro Stoxx 50 index of leading eurozone shares declined 0.48 percent to 2,332.48 points.
The European single currency stood at 1.2961 dollars.
Obama has warned of a "catastrophe" without immediate action as the Senate prepared to vote on his 800 billion dollar-plus stimulus package to help lift the United States out of recession.
There was meanwhile caution before a speech on Tuesday -- one day later than initially planned -- by US Treasury Secretary Timothy Geithner on fresh measures to clean up the financial system.
"The FTSE opened low (on Monday) as investors grow anxious over the passing of President Obama's stimulus package and the delay in the financial recovery plan," said Joshua Raymond, Market Strategist at City Index.
"We need to see a vote on the stimulus sooner rather than later. Last week's jump in US unemployment has made the package even more significant with investors becoming increasingly nervous in case the package goes to a vote and fails."
In Asian trading, Japanese share prices closed 1.33 percent lower, also weighed down by worries that the US stimulus package may be delayed by wrangling.
Hong Kong stocks closed 0.8 percent higher on Monday, tracking gains on the mainland bourse triggered partly by a stimulus package announced for key industries, dealers said.
Wall Street, which reopens at 1430 GMT, had soared before the weekend as investors shook off grim jobless data to focus on the upcoming financial-sector rescue measures.
Back in London, British bank Barclays (LSE: BARC.L - news) bucked the downward trend after posting healthy net profits for 2008 that were only slightly below 2007.
Barclays' share price rallied 8.21 percent to 113.40 pence after the bank said it had overcome writedowns and losses of 8.1 billion pounds (11.8 billion dollars, 9.1 billion euros) last year.
Net profit, boosted by one-off gains including the acquisition of the North American operations of bankrupt Lehman Brothers (NYSE: LEH - news) , eased one percent to 4.382 billion pounds in 2008.
"In a very difficult economic environment in 2008, Barclays has steered a course that has enabled us to be solidly profitable despite strong headwinds," the bank said in an earnings release.
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