London, Aug 10: European share markets fell further on Tuesday as worries about a possible increase in US interest rates continued to sideline investors. Dealers said the cautious tone was likely to persist before a decision by the US monetary authorities in two weeks on interest rates.The latest data has highlighted a build up of inflationary pressures, pointing to a possible tightening of monetary policy. In Britain, a survey pointing up strong retail sales data also raised fears of higher interest rates on this side of the Atlantic.
Higher rates, raising the return from cash holdings, traditionally sucks money from stock markets. The Dow Jones Industrial Average has lost 4.5 per cent since mid-July and shed another 6.33 points on Monday to 10,707.70.In London, the FT-SE 100 index fell 65.1 points in early deals to stand at 6,061.3 points by mid-morning. In Paris, the CAC 40 index opened lower and continued to drift south, showing a loss of 28.93 points by mid-morning, when it stood at 4,263.97.
Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.
Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.
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