Tuesday September 15, 12:59 PM
European stocks steady on grim Lehman date
LONDON (AFP) - European equities paused on Tuesday as investors mulled the one-year anniversary of the collapse of US investment bank Lehman Brothers (NYSE: LEH - news) which devastated the financial sector and the global economy.
Frankfurt, London and Paris stabilised in late morning trade, after overnight gains in New York and a mixed performance in Tokyo, as traders also awaited the latest economic data from the United States.
The London FTSE 100 index rose 0.06 percent to 5,021.63 points and the Paris CAC 40 firmed by 0.09 percent to 3,734.08, while Frankfurt's DAX 30 (Xetra: news) shed 0.37 percent to 5,599.18 points.
The DJ Euro Stoxx 50 index of leading eurozone shares eased 0.10 percent lower to 2,826.38.
Lehman, once the darling of Wall Street, collapsed on September 15, 2008, ultimately pushing the world economy into its worst slump since the 1930s.
"In marked contrast to a year ago on the day Lehman collapsed, it has been a quiet start to the trading day in Europe," said analyst Richard Griffiths at financial betting company Spreadex on Tuesday.
"With very little company news, all eyes will be on important economic news to give some direction a market that seems for the minute to have run out of steam."
Later today, Wall Street investors will digest producer price inflation and retail sales figures.
"Market reaction to them will be an important indicator of underlying sentiment," added Griffiths.
On Monday, US President Barack Obama bluntly warned that some Wall Street bosses were ignoring lessons of the financial crisis, as he demanded a new age of prudence one year after the demise of Lehman Brothers.
"The old ways that led to this crisis cannot stand," Obama said, in an outspoken address delivered in the shadow of US finance firms he blamed for unleashing global contagion. "History cannot be allowed to repeat itself."
New York stocks had finished higher in calm trade on Monday as the upbeat mood on economic recovery helped the market shrug off an escalating trade dispute between the United States and China.
The US market recouped early losses, and the Dow Jones Industrial Average rose 0.22 percent to close at 9,626.80.
Market action came as China filed a World Trade Organization complaint over what it alleged were unfair tariffs imposed by Washington on Chinese tyre imports.
In Asia on Tuesday, Japanese shares ended narrowly mixed with many investors waiting on the sidelines because of concerns about the stronger yen and uncertainty over the incoming government's policies.
Tokyo's benchmark Nikkei (news) -225 index rose 0.15 percent to 10,217.62 points, while the broader Topix index of all first section shares fell 0.16 percent to 932.52.
Hong Kong shares fell 0.31 percent on concern about trade tensions between China and the United States and their potential impact on the recovery of the world economy. Trading was cancelled for the morning session due to a typhoon overnight.
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