European shares fell on Monday, though generally off early lows, and Wall Street was seen mixed to lower after its tumble on Friday, amid fears that a Chinese devaluation could be the next problem to hit emerging markets. The dollar was trading in a narrow range around the $1.16 per euro and above 114 yen in quiet trade, garnering support against the Japanese currency from a weekend comment in China's Business Weekly that a devaluation or float of the yuan might not be a bad thing.``As the financial market responded positively after the Brazilian government let its currency float against the US dollar, some analysts said the devaluation or floating of yuan would not definitely be a bad thing,'' it said. Chinese analysts said this did not reflect official policy.
London's FTSE 100 stock index was down around half a per cent in late morning, off its lows but weighed down by a 2.45 per cent tumble in Hong Kong and by Friday's Wall Street decline. Led by falls in bank stocks unsettled by the financialsituation in Asia, the blue chip index was down around 30 points by 1130 GMT. Decliners were in a 13-to-two majority, with banking groups HSBC Holdings and NatWest both off.
The decline in the FTSE 100 extended the sharp falls of the past two sessions and took the index further away from its record 6,195.6 set on January 8.
Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.
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