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Microcap & Penny Stocks : Tokyo Joe's Cafe / Societe Anonyme/No Pennies -- Ignore unavailable to you. Want to Upgrade?

To: nikko who wrote (5291)	10/5/1998 4:27:00 AM
From: TokyoMex	Read Replies (1) \| Respond to of 119973

Monday October 5, 4:03 am Eastern Time FOCUS-Europe markets seen weaker after Asia falls By Jane Macartney LONDON, Oct 5 (Reuters) - Shares were expected to open weaker across Europe on Monday, with Germany down at the start and Paris indicating a five percent drop amid disappointment at the inability of G7 finance minister to adopt clear policy moves at the weekend. In Asia, Tokyo stocks wilted to close below 13,000 for the first time since January 1986 and Hong Kong shares were dragged down more than 3.5 percent when trading resumed amid concerns of a global economic slowdown after a two-day holiday last week. The inability of the Group of Seven industrialised countries to address global issues ranging from emerging market turmoil to hedge funds supervision also hit the dollar, which fell overnight in Asia. Bonds, however, were firm, still regarded as a safe haven from the turmoil gripping the world's other financial markets. ------------------------------------------------------------ MARKET PRICES AT 0715 GMT MARK 1.6317/63 YEN 135.45/55 STERLING 1.6922/28 GOLD $299.75/300.25 +2.39 (pvs PM fix) BRENT $0.00 -0.00 FTSE 0 -0.00 CAC 0.00 -141.32 X-DAX 3907.3 -112.01 ------------------------------------------------------------ Widespread disappointment that the Group of Seven's weekend meeting offered no concrete plan to restore the global economy's health was set to overshadow the markets in Europe after the dismayed response in Asia overnight. Germany's benchmark Xetra DAX fell at the opening, pulled down by the two percent decline by Tokyo's Nikkei index. It was down nearly three percent in early trade while the DAX floor trade dropped 1.25 percent. Software maker SAP AG's preference shares dropped 6.91 percent to 620 marks as software stocks in the United States have fallen victim to an apparent slowdown in new corporate technology spending. Volkswagen AG slipped three percent. BNP on Friday cut VW's rating amid expectations economic crises in Russia and Latin America would limit its growth. Early indications for the Paris stock market showed a fall of nearly five percent before trade formally began. In London, shares were seen opening weak amid disappointment at no clear policy moves from the weekend meeting of G7 finance ministers and central bankers. Friday's Wall Street rally, coupled with hopes for a British british rate cut at the Bank of England policy meeting this week, could lend the market support. Yet the fresh decline in shares in Japan, along with early losses in Germany were seen as highlighting the continuing shaky global mood. ''If the market figures out there wasn't much from the G7 we should be down today,'' said one senior equity salesman. The G7 meeting agreed to explore a new U.S. plan to provide struggling countries easier access to fresh capital, but its final communique made no mention of a Japanese idea to provide $30 billion in emergency aid to ailing neighbours. There was also no mention of co-ordinated interest rate cuts, being resisted in Europe. ''This was supposed to be the weekend when G7 said something constructive about the yen and about interest rates,'' said Bear Stearns International chief economist David Brown. ''The markets were looking for a bold commitment, for G7 to throw down their wallets on the table and bail out beleagurered emerging markets,'' Brown said. ''All they've got is promises and rhetoric.'' Chart analysts saw the next FTSE 100 support level at 4,650, having last week broken down through support at around 4,950. In Tokyo, the benchmark Nikkei average fell 275.57 points or 2.08 percent to 12,948.12. Nikkei December futures fell 310 to 12,950. ''If the G7 nations want to restore confidence in global stock markets, coordinated interest rate cuts will be necessary,'' said Kazue Mayuzumi, deputy chief operating officer at Nikko Securities. ''But there is no sign the Europeans will reduce their rates.'' He said global investors were shifting to bonds amid spreading concern over deflation. The U.S. 30-year long bond yield fell to another record low on Monday, further evidence that investors are fleeing to safety amid persistent nervousness. Demand for low-risk Treasuries has shown no sign of slackening as stock markets slide. The yield on the long bond fell to 4.79 percent. It was as low as 4.82 percent on Friday. On foreign exchange markets, the dollar opened weak in Europe against both the mark and the yen, finding little support after the indecisiveness at the weekend G7 meeting. The dollar was seen hovering above Friday's 20-month low against the mark, although the dollar's weakness against the yen was muted by the steep fall in Japanese shares. ''It's quite unusual that the market was so quiet in post-G7 trading. It may be many people were amazed to see how useless G7 meetings have become,'' said a commercial bank trader in Tokyo. As he entered the headquarters of the International Monetary Fund on Sunday, billionaire financier George Soros said of the meeting: ''It sounded a little bit empty.'' -------------------------------------------------------------------------------- Related News Categories: options, US Market News -------------------------------------------------------------------------------- Help -------------------------------------------------------------------------------- Copyright © 1998 Reuters Limited. All rights reserved. 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