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European shares brush off US woes | |
(about 2 hours later) | |
European shares rose in early Tuesday trading, brushing off concerns about the US economy that had seen Wall Street close sharply lower overnight. | |
With analysts saying European stocks were being lifted by bargain hunters picking up cheap shares after Monday's falls, London's FTSE 100 was up 1%. | |
Meanwhile, Frankfurt's Dax added 0.7% and Paris' Cac gained 0.9%. | |
Overnight the main US index, the Dow Jones, fell 1.7% due to further fears about the ongoing credit crisis. | |
The big decline came after Goldman Sachs downgraded the shares of Citigroup, and forecast the bank giant would report $15bn (£7.3bn) in losses. | |
Ongoing fears | |
Tokyo's Nikkei 225 closed up 1.1% on Tuesday after sentiment was buoyed by a takeover bid for one of the country's largest banks. | |
It's a Black November Trader Masayoshi Okamoto | It's a Black November Trader Masayoshi Okamoto |
A group of investors led by US buyout firm JC Flowers are bidding about $1.8bn for just under a third of Shinsei Bank. | A group of investors led by US buyout firm JC Flowers are bidding about $1.8bn for just under a third of Shinsei Bank. |
Analysts said US investors remain fearful that ever more global banks will reveal their exposure to bad American mortgage debt and the resulting credit crisis. | |
"The concern is that if there are unknown losses still to be recorded, the risk aversion that has been present in markets will remain," said Tony Brennan, equity strategist at Deutsche Bank. | "The concern is that if there are unknown losses still to be recorded, the risk aversion that has been present in markets will remain," said Tony Brennan, equity strategist at Deutsche Bank. |
"It's a Black November," said Masayoshi Okamoto, head of dealing at Japan's Jujiya Securities. | "It's a Black November," said Masayoshi Okamoto, head of dealing at Japan's Jujiya Securities. |