Worries about economic growth pushed the French market into negative territory in afternoon trading Monday. Friday's reassuring comments from Federal Reserve chairman Ben Bernanke and firm cues from Asia/Pacific failed to sustain optimism.
Crude for October delivery is slipping $0.40 at $74.77 per barrel and gold is adding $1.4 at $1238 an ounce.
In economic news, Eurozone economic confidence rose to 101.8 in August from 101.1 in July, a monthly survey from the European Commission showed. The economic sentiment index remained above its long-term average and expected reading of 101.6. Consumer confidence improved to minus 11 in August from minus 14 last month. Confidence in services rose to 7 from prior month's level of 6. Retailers confidence remained unchanged at minus 4.
After an extraordinary policy board meeting, the Bank of Japan announced an expansion to its low-interest lending program, as it bids to stem the rise in the yen. At the same time, the bank also maintained its key interest rate at near-zero.
After opening higher at 3,519, the CAC 40 erased its early gains. The index, which saw choppy trading throughout the session, is currently losing 0.45%.
France Telecom is the biggest percentage loser on the index, having fallen 3.36%. Media firm Lagardere is dipping 2.05%, while peer Vivendi is adding 1.18%. Insurer Axa is slipping 1.7%.
Among banks, Dexia is losing 1.48% and BNP Paribas is retreating 0.9%. Societe Generale and Credit Agricole are declining 0.39% and 0.34%, respectively.
Car maker Renault is retreating 1.29%, whereas Peugeot is rising 0.38%.
The winners are led by Alcatel Lucent, which is gaining 1.52%. Utility GDF SUEZ is adding 1.35%. Sanofi-Aventis, which offered to buy Genzyme, is climbing 1.2%.
Overseas, most major Asian markets rallied to end the day notably higher. China's Shanghai Composite Index gained 1.61% and Japan's Nikkei 225 gained 1.76%. India's BSE Sensex ended the day modestly higher by 0.19%. In Australia, All Ordinaries gathered 1.79%.
In the U.S., futures indicate a slightly lower open on Wall Street. In the previous session, the Dow surged 1.7%, the Nasdaq rallied 1.6% and the S&P 500 rose 1.7%.
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