Asian Markets Fall; Europe Higher
NEW YORK (AP) _ Stocks turned lower on Wall Street today after failing to hold early gains in the first U.S. trading following last week’s big drop. Stocks recovered in Europe after big losses Monday, but closed lower in Asia.
In the first hour of trading, the Dow Jones industrial average was down 50.88 at 10,168.64, while the Nasdaq composite index was off 4.19 at 4,407.55.
U.S. stocks plunged on Friday, carrying the Dow down 295 points and the Nasdaq down 137 after Federal Reserve Chairman Alan Greenspan suggested more rate increases may be needed to cool off the economy and keep inflation under control.
European markets were recovering today after a big drop Monday. Investors were looking for bargains in technology and banking stocks.
The DAX index in Frankfurt, Germany, rose 1.01 percent as demand for Deutsche Bank stock surged on news of the company’s e-commerce plans. The upswing, together with rumors of impending mergers, sparked a rally for other German banking shares.
London’s FTSE-100 Share Index was up 0.32 percent, with enthusiasm for telecommunications stocks, including Vodafone AirTouch, outweighing fears of further interest rate hikes.
But a second straight day of selling in Asia earlier today hit high-tech shares particularly hard.
In Japan, the benchmark 225-issue Nikkei Stock Average closed down 0.78 percent. On Monday, the average tumbled 245.28 points, or 1.23 percent.
Markets in Hong Kong and Singapore also suffered today. The Hang Seng index fell 0.4 percent and Singapore’s benchmark Straits Times Index closed down 0.44 percent.
The losses pointed to one cause: last week’s big drop on Wall Street.