India bombs upset overseas markets
PROFIT-taking and investor nerves after the bombings in India sent major overseas markets down yesterday.
Worries about sluggish sales and possible job losses also hit European technology shares, including mobile phones giant Nokia and electronics groups Siemens and Philips. Frankfurt fell 1.5%, Paris 1%.
Many UK shares were traded on Wall Street, although volumes were thin.
Steel-maker Corus soared 10% after weekend news that Russian billionaire Alisher Usmanov has raised his stake from 5.1% to 6.85%.
ITV group Carlton jumped nearly 5% on hopes its planned merger with Granada will be approved.
Sentiment against hard-pressed airlines after the Indian bomb knocked British Airways nearly 2%.
On foreign currency markets, the pound fell 0.4 cents against the dollar to $1.57, but was largely unchanged against the euro at 69.2p.
Tokyo held level as news of rising exports to the rest of Asia buoyed economic recovery hopes. Japan's trade surplus rose 7.3% in July.
Wall Street was unimpressed by new data showing record US home sales last month. Purchases leapt 5%, well ahead of forecasts. With mortgage rates rising sharply, US estate agents say the boom is over.
