Thu, Jan 06, 2000 - Page 1 News List

NASDAQ takes another hit; Europe off

AGENCIES

Fears continued to grip global markets in early trading yesterday as US technology stocks and European shares registered heavy losses.

In morning trade on Wall Street, the Dow Jones Industrial Average was off by 5.58 points, or 0.05 percent at 10,992.35, but the NASDAQ composite index was down a whopping 152.11 points, or 3.90 percent, at 3,749.58.

Germany's DAX Xetra index of 30 major companies fell by as much as 89.1 points, or 1.35 percent, to 6,497.85 points in afternoon trade yesterday after a report showed unemployment fell more than expected in December.

The Neuer Markt Performance Index, which tracks technology and media shares, fell by as much as 243.51 points, or 5.37 percent, to 4291.01.

German insurers, on the otherhand, rose as Deutsche Bank AG raised its rating on the industry after the government last month said it plans to end a tax on assets sales.

In London, the FTSE 100 Index tumbled by as much as 105.60 points, or 1.6 percent, to 6560.30.

Meanwhile France's CAC-40 index was lower by as much as 157.15 at 5,514.87.

US stocks remained volatile yesterday on Wall Street amid a global selloff that has brought major stock indexes down around the globe since the new year began.

On Tuesday, the Dow, which tracks blue chip stocks, plunged 3.17 percent. The NASDAQ, which is dominated by high-technology stocks, fell 5.55 percent.

Traders on Wall Street were in suspense early yesterday to see whether the market would continue sliding or stabilize.

The Standard and Poor's 500, a broader index of the New York Stock Exchange than the Dow, was down 21.38 points, or 1.53 percent in early trade yesterday. It had shed 3.83 percent the day before.

Analysts said the sharp losses by high-technology stocks on the NASDAQ were not surprising, given their towering gains last year, particularly in the fourth quarter. The NASDAQ gained 85 percent in 1999. In the first few days of 2000, it has lost more than 9 percent.

The Dow, which gained 25.2 percent in 1999 but has lost 4.4 percent so far this year, was helped by strength in blue chips.

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