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Around the World's Markets

Tuesday 01 September 1998 23:02 BST
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LONDON

THE UK stockmarket posted a sharp loss as uncertainty over Russia and global recession fears still weighed on sentiment yesterday. The FTSE-100 closed 80.3 points lower at 5169.1 after losses of up to 173.7 points. Dealers said a rebound in Wall Street after Monday's slump and selective bargain-hunting by UK investors, helped to pare some losses later. Second-liners were hit worst: the FSTE-250 ended at a year low of 4627.3 after shedding 158.9 points, and small caps closed at an all-time 2047.4 low on a 78.7 point loss.

Market Report, page 17

NEW YORK

THE Dow Jones Industrial Index staged a recovery yesterday after Monday's 500-point collapse as bargain-hunters moved in. However, the market was very nervous at first. It rose, then fell, and rose by lunchtime.

Computer stocks showed the best gains, with telecom and financial shares faring worst.

Travelers shares were down on the news of $150m losses at its Salomon Smith Barney broking business. Bankers Trust fell after warning of third quarter losses because of problems in Russia.

TOKYO

THE KEY Nikkei average bounced back to close 1.86 per cent higher after losing over 3 per cent at one point in the morning. Initially the market had been battered by Russia's instability but recovered on active buying-back. The Nikkei 225 closed with gains of 261.74 points or 1.86 per cent at 14,369.63. That was off the morning low of 13,664.74, down more than 3 per cent from Monday's close. Dealers said the final rebound was technical. A strategist at Commerz Securities (Japan), Hitoshi Ichio, said: "The Nikkei's rebound has been feeble since it slipped below 14,300."

HONG KONG

HONG KONG stocks dropped to a sharply lower close yesterday after a choppy session that saw prices tumble after Wall Street's overnight fall, but also move briefly into positive territory on short covering.

The Hang Seng lost 212.57 points, or 2.92 per cent, to end at 7,062.47 after bouncing between 6,982.43 and 7,306.40. Turnover shrank to HK$6.2bn against Monday's level of HK$6.57bn, leading brokers to doubt that the government was supporting the market by buying shares.

FRANKFURT

SHARES closed marginally higher in late trading in Frankfurt, with the Xetra DAX closing up 44.62 points, nearly 1 per cent, at 4,855.90.

The Frankfurt market followed the roller-coaster ride of the rest of Europe, but ended higher on the belief that US stocks had been oversold on Monday. The Xetra DAX traded in a range of 4,647.88 to its closing level. "The market has been extremely volatile today and there has been a lot of uncertainty, with nobody really knowing what to do," said a trader.

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