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Europe lifted by Baghdad collapse
LONDON, England (CNN) -- European markets recouped some their losses on Wednesday as investor greeted signs that the Iraqi regime may have collapsed after hundreds of jubilant residents took to the streets of Baghdad to greet U.S. solider's. But investors' reaction was tempered by concern over a weak economy and poor corporate earnings. London's FTSE 100 ended 0.2 percent lower at 3,861.4 and the CAC 40 blue chip index in Paris also slipped 0.2 percent to 2,888.03, while Frankfurt's electronically traded Xetra Dax was up 0.2 percent to 2,772.12 in late trading (the German market was set to close at 1900 GMT). The pan-European FTSE Eurotop 300, a broader index of the region's largest stocks, was flat. "To see the pictures of people celebrating has hit home that he (Saddam Hussein) is no longer in charge," one trader in London told Reuters. That enthusiasm was not shared by all market watchers who believe once the war has faded from TV screens, investors will still be faced with economic and corporate problems. "Markets need fairly good news to carry on the kind of rallies that we have seen in the past days but it looks like it will be difficult to get them for some time to come," Richard Champion, a European fund manager who oversees about £110 million pounds at Pavilion Asset Management, told Reuters. "Companies are still holding back on investment decisions until things get a bit clearer but there is still very little visibility and it is difficult in these conditions to get confidence back in the markets." Britain's biggest insurer Aviva fell 0.7 percent to 375.18 pence -- off its lows for the day -- after debt agency Standard & Poor's cut Aviva's credit rating, citing a fall in the value of its assets due to weak financial markets. Also in the losers column, Europe's biggest insurer ING fell 2.6 percent to 13.03 euros, hit by a double whammy of credit rating downgrades from rival credit rating agencies Moody's and Standard & Poor's. Meanwhile, LVMH was among Europe's biggest gainers, rising 3.8 percent to 39.56 euros after it reported resilient growth at its Louis Vuitton leather goods brand and maintained its full-year guidance. German insurer Allianz rose 3.2 percent to 59.20 euros in late Frankfurt trading. The company earlier announced that shareholders participating in its 3.5 billion-euro rights issue would be offered seven new shares for every 15 already held. The AEX index in Amsterdam was down 0.5 percent and Milan's MIB30 index fell 0.4 percent, while the SMI in Zurich gained 0.2 percent. In the U.S. on Wednesday, stocks were mixed in early trading in reaction to the U.S.-led coalition securing control much of Baghdad. But investors were also looking to what might come next in terms of the economy and corporate earnings at home. At 1330 GMT, the Dow Jones industrial average was up 5.61 points to 8304.53 and the Standard & Poor's 500 gained 0.31 points to 878.60, while the Nasdaq composite was down 1.01 points to 1,381.93. ----- Eurostocks mixed as Iraq offsets economy worries By Paul Richardson LVMH was among Europe's biggest gainers, rising 3.8 percent to 39.56 euros after it reported resilient growth at its Louis Vuitton leather goods brand and maintained its full-year guidance. In the losers column, Europe's biggest insurer ING fell 2.6 percent to 13.03 euros, hit by a double whammy of credit rating downgrades from rival credit rating agencies Moody's and Standard & Poor's. German insurer Allianz bucked the trend, rising 3.2 percent to 59.20 euros in late Frankfurt trading. The company earlier announced that shareholders participating in its 3.5 billion-euro rights issue would be offered seven new shares for every 15 already held.
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