Euroshares open down on Dow, Asian losses, chip earnings offer solace

Euroshares open down on Dow, Asian losses, chip earnings offer solace

	Published : Wed, 17 Oct 2007 08:33 By : Agencies Print this Story

LONDON (Thomson Financial) - European bourses tracked US and Asian markets lower in opening deals although a handful of bullish updates from semiconductor companies offered some solace.

At 08.29, the STOXX 50 was down 8.82 points at 3853.75 and the STOXX 600 was down 0.35 points at 383.69.

Last night, the DJIA fell 71.86 points, or 0.51 pct, to 13,912.94, but off intra-day lows.

The Standard & Poor's 500 index slid 10.18, or 0.66 pct, to 1,538.53, and the Nasdaq composite index dipped 16.14, or 0.58 pct, to 2,763.91 after Federal Reserve chairman Ben Bernanke said the slumping housing market remains a 'significant drag' on the economy.

Bernanke's speech Monday night in New York elevated concerns that the summer's credit tightness might persist into the winter -- a sobering thought for investors, who are sifting through mixed third-quarter earnings and watching energy costs rise.

Crude oil prices spiked to another record above 88 usd and the National Association of Home Builders' index showed sales fell for the eighth consecutive month to the lowest point since January 1985.

A day after Citigroup Inc. reported a steep third-quarter profit decline, the US's fifth largest bank, Wells Fargo & Co, reported a smaller than forecast rise in third-quarter earnings. KeyCorp shares declined nearly 6 pct after the Midwest regional bank posted a 33 pct drop in third-quarter profit. U.S. Bancorp also reported a dip in third-quarter earnings.

Intel Corp advanced 5.5 pct after the company reported a 43 pct jump in third-quarter net earnings to 31 cents a share, beating market forecasts for earnings of 30 cents a share.

And the good news for chip stocks continued on this side of the Atlantic as ASML Holdings NV reported a stronger than forecast set of third-quarter earnings and issued an upbeat outlook.

Infineon added 2.4 pct and StMicroelectronics was up 1.34 pct and CSR added 2.1 pct.

Higher D-Ram prices in Asian trade also supported the sector.

deborah.hyde@thomson.com

dlh/lht

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