Euro Stocks Get Off To Mixed Start

Market nerves continued to show through the course of trading this morning, with investors slow to commit to further investment in corporate securities.

Yet again, markets have awoken to fears of another bad day stateside, after continuing unrest in the sub-prime mortgage market, which has made investors in Europe shy away from buying.

Brokers from the investment bank Merrill Lynch have fuelled the early sell offs across Europe by issuing a warning to the effect of the credit crunch on profits at banks and other lenders.

As a result, markets have experienced some ups and downs through the course of trade this morning, with analysts predicting significant losses once the Dow gets up and running for the day.

By the middle of today, the FTSE 100 index had actually grown slightly, clawing back around 24 points on yesterday’s losses as investors look to snap up bargain shares in quick trades, and was sitting at 6126.

Meanwhile, in Germany the DAX exchange has again declined over the morning, with the impact from the morning in the US markets still to come. By midday, the DAX had lost around about 11 points, taking it to 7419.

The CAC 40 in Paris had again moved similarly to the FTSE 100, garnering some upwards momentum prompted by cheap share deals, up by 26.89 points to 5501.1.

However, analysts are predicting that the gains will not be strong enough to fight off losses on the Dow Jones and NASDAQ when they open later in the day, reflecting the belief that indexes across Europe will close down overall at the closing bell.

In trade today in Asia, the Japanese Nikkei closed down by 1.7% on the back of yesterday’s trading from the US which showed largely negative share sell offs across the board.

Story link: Euro Stocks Get Off To Mixed Start