Wed Jun 18, 8:27 AM ET
LONDON (AFP) - European equities fell Wednesday after sharp overnight US losses as sentiment was also hit by a report that a Royal Bank of Scotland analyst had warned of a global market crash.
In late morning trading, London's FTSE 100 index of leading shares slid 1.53 percent to 5,772.50 points.
The Paris CAC 40 index sank 1.23 percent to 4,628.50 points and Frankfurt's DAX 30 index shed 0.67 percent to 6,750.31 near the mid-way point.
The Euro Stoxx 50 index of top eurozone shares lost 0.98 percent to 3,520.59 points.
The European single currency stood at 1.5485 dollars.
Wall Street tumbled Tuesday as data showing inflation heating up and housing still fragile offset surprisingly good earnings from investment bank Goldman Sachs.
Tokyo shares bucked the trend, jumping higher on Wednesday as a weaker yen boosted exporters, dealers said.
In Britain, The Daily Telegraph reported that an analyst working for Royal Bank of Scotland (RBS) had advised clients to prepare for a full-fledged crash in global stock and credit markets in the next three months amid soaring inflation.
However, an RBS spokeswoman told AFP that the report did not reflect the view of the bank.
"A very nasty period is soon to be upon us -- be prepared," said Bob Janjuah, senior RBS credit strategist, in a report to clients that was published in the daily newspaper.
The RBS report also warned that New York's broad-market Standard & Poor's 500 index could shed more than 300 points to around 1,050 points by September.
In European trade, financial sector fell sharply on Wednesday.
RBS saw its share price dive 3.52 percent to 232.75 pence and banking peer Lloyds TSB fell 2.60 percent to 347 pence.
In Paris, French banks Credit Agricole and Societe Generale shed 2.31 percent and 2.53 percent to stand at 13.53 euros and 58.48 euros respectively.
Back on Wall Street, traders were waiting for quarterly results from US investment bank Morgan Stanley due Wednesday, after better-than-expected earnings at Goldman Sachs.
"Goldman's better-than-expected earnings raised hopes that Morgan Stanley's earnings may not be bad either," JPMorgan strategist Masaru Ohnishi told Dow Jones Newswires.
The Goldman results, however, failed to lift Wall Street on Tuesday, when the Dow Jones index slipped 0.89 percent after data showed a rise in wholesale inflation and ongoing problems in the housing sector.
The Nasdaq composite retreated 0.69 percent to 2,457.73 and the Standard & Poor's 500 index shed 0.68 percent to end at 1,350.93 points.
In Asia on Wednedsday, Tokyo's benchmark Nikkei-225 index climbed 0.73 percent to end at 14,452.82 points.
LONDON (AFP) - European equities fell Wednesday after sharp overnight US losses as sentiment was also hit by a report that a Royal Bank of Scotland analyst had warned of a global market crash.
In late morning trading, London's FTSE 100 index of leading shares slid 1.53 percent to 5,772.50 points.
The Paris CAC 40 index sank 1.23 percent to 4,628.50 points and Frankfurt's DAX 30 index shed 0.67 percent to 6,750.31 near the mid-way point.
The Euro Stoxx 50 index of top eurozone shares lost 0.98 percent to 3,520.59 points.
The European single currency stood at 1.5485 dollars.
Wall Street tumbled Tuesday as data showing inflation heating up and housing still fragile offset surprisingly good earnings from investment bank Goldman Sachs.
Tokyo shares bucked the trend, jumping higher on Wednesday as a weaker yen boosted exporters, dealers said.
In Britain, The Daily Telegraph reported that an analyst working for Royal Bank of Scotland (RBS) had advised clients to prepare for a full-fledged crash in global stock and credit markets in the next three months amid soaring inflation.
However, an RBS spokeswoman told AFP that the report did not reflect the view of the bank.
"A very nasty period is soon to be upon us -- be prepared," said Bob Janjuah, senior RBS credit strategist, in a report to clients that was published in the daily newspaper.
The RBS report also warned that New York's broad-market Standard & Poor's 500 index could shed more than 300 points to around 1,050 points by September.
In European trade, financial sector fell sharply on Wednesday.
RBS saw its share price dive 3.52 percent to 232.75 pence and banking peer Lloyds TSB fell 2.60 percent to 347 pence.
In Paris, French banks Credit Agricole and Societe Generale shed 2.31 percent and 2.53 percent to stand at 13.53 euros and 58.48 euros respectively.
Back on Wall Street, traders were waiting for quarterly results from US investment bank Morgan Stanley due Wednesday, after better-than-expected earnings at Goldman Sachs.
"Goldman's better-than-expected earnings raised hopes that Morgan Stanley's earnings may not be bad either," JPMorgan strategist Masaru Ohnishi told Dow Jones Newswires.
The Goldman results, however, failed to lift Wall Street on Tuesday, when the Dow Jones index slipped 0.89 percent after data showed a rise in wholesale inflation and ongoing problems in the housing sector.
The Nasdaq composite retreated 0.69 percent to 2,457.73 and the Standard & Poor's 500 index shed 0.68 percent to end at 1,350.93 points.
In Asia on Wednedsday, Tokyo's benchmark Nikkei-225 index climbed 0.73 percent to end at 14,452.82 points.
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