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Bourses struggle for support
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October 21, 1998: 12:59 p.m. ET
Mild losses across the continent as investors remain wary
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LONDON (CNNfn) - Bourses scratched around for support Wednesday, but in the absence of any strong lead ended the day mildly lower.
Gains overnight in Asia could not prevent an early-morning decline in Europe. Throughout the day, bourses traded pretty close to Tuesday's close. But with Wall Street opening in subdued fashion, any positive moves eked away, and most European markets finished Wednesday at their lows for the day.
In London the FTSE 100 eased 45.3 points, or 0.9 percent, to close at 5206.6.
Frankfurt's Xetra DAX closed at 4534.55, down more than 2.5 percent, or 123.31 points.
In Paris the CAC 40 slipped 51.74 points, or 1.5 percent, to 3440.78.
Zurich's SMI finished the day down 1 percent at 6134.1, a loss of 59.9 points.
London stocks proved relatively robust, despite some poor economic data. Retail sales figures for September highlighted the pressure on stores from depressed consumer confidence.
The economic statistics contributed to a reversal in sentiment toward supermarket groups. Previously seen as a good hedge against lackluster economic activity and strong sterling, the sector was in the vanguard of the decline.
A downgrade on the sector from broker BT Alex Brown didn't help, and Tesco, the United Kingdom's largest grocer slumped 7 percent. Rivals such as Sainsbury, Asda and Safeway fell about 5 percent.
Banks managed to stay on positive ground, for the most part. News that the Japanese banking system may be recovering proved an early-morning boost, as did press reports that British banks plan to link all their cash machines.
Barclays rose 2 percent, and HSBC and National Westminster posted 1 percent increases.
The release of minutes from the Bank of England's last meeting raised hoped another interest rate cut might not be far away.
In France computer group Bull stole the limelight. The group's volatile stock closed up nearly 8 percent.
Oil stocks Elf Aquitaine, off 3.4 percent, and Total, down more than 5 percent, were pulled lower by fears over the crude price.
German stocks were undermined by a survey showing a sharp fall in business confidence, although economists said there's little likelihood of a rate cut when the Bundesbank council meets Thursday.
Deutsche Bank did well for the second consecutive day. The shares rose more than two marks to 105 marks.
BMW, which also enjoyed a strong run Tuesday, came under fire as problems mounted at its Rover subsidiary. Rumors of major job cuts hit the stock, and it closed down nearly 3 percent.
Amsterdam's AEX index finished almost unchanged, dragged upward by the performance of entertainment group PolyGram.
Third-quarter results reassured investors that the 115 guilder per share takeover by Seagram (VO) would go ahead. PolyGram stock jumped nearly 7 percent to 108.8 guilders.
PolyGram's parent, Philips, was flat ahead of its own third-quarter numbers due out Thursday.
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